CANNON CTFA FINAL EXAM 2026 UPDATED
QUESTIONS AND SOLUTIONS GRADED A+
✔✔Community Property - ✔✔All property that spouses acquire by their joint efforts
during their marriage. Property owned at the time of marriage or acquired by gift or
inheritance and the rents and profits there from is considered "Separate Property"
Subject to Probate.
✔✔1.) Sole Property
2.) Tenants in common
3.) Community Property - ✔✔What forms of Ownership are subject to probate?
✔✔1.) Tenancy by the Entirety
2.) Joint Tenancy (WROS)
3.) Living Trust Property
4.) Beneficiary - ✔✔What forms of ownership AVOIDS Probate?
✔✔1.) Tenancy by the entirety
2.) Community Property - ✔✔What form of ownership can only be held between
spouses?
✔✔Contract Property - ✔✔Any property in which you can name a beneficiary. AVOIDS
probate if a valid beneficiary is named. (ex.POD, TOD, Life Insurance, IRA, Annuity,
Qualified Retirement Plan)
✔✔Living Trust Property - ✔✔Property Legally titled in the name of a living trust.
Subject to the terms of the trust agreement. Owning property in trust separates legal
ownership of the assets from beneficial ownership. AVOIDS PROBATE.
✔✔Time-Weighted - ✔✔_______________ returns show the impact of the investment
manager's security-selection decisions, without being affected by the timing of the cash
flows.
✔✔Dollar Weighted Return - ✔✔The Return actually obtained by the dollars invested,
for the actual time they were invested.
✔✔Dollar Cost Averaging (DCA) - ✔✔The idea behind the approach is to limit the risk
associated with investing at the "wrong time" (market timing) by investing a fixed
amount of money on a regular basis.
✔✔A.) 600 shares
B.) 700 shares - ✔✔Dollar Cost Averaging Exercise:
A.) If you invested $30,000 at one time, in a stock or a mutual fund trading at $50.00 per
share what is the total number of shares you would own?
, NOW
B.) Assume you have a total of $30,000 and you want to invest $10,000 per month. How
many shares would you have?
Month Price Per Share/ NAV
1 $50
2 $100
3 $25
4 $100
✔✔12.06 million - ✔✔What is the Basic Exclusion Amount for 2022
✔✔It is the Basic Exclusion amount + Dead Spouse Unused Exemption - ✔✔What is
the Applicable Exclusion Amount
✔✔$4,769,800 - ✔✔What is the Applicable Credit Amount for 2022
✔✔ Diversification - ✔✔Most effective way to reduce risk in a portfolio
✔✔Common Stockholders - ✔✔Who benefits the most in a highly leveraged company
during periods of rising profits
✔✔Federal level ONLY. EXEMPT from State and Local level. - ✔✔What level are
Treasury Securities taxed at?
✔✔Municipal Bonds - ✔✔What can Pooled Income Funds NOT invest in
✔✔Bonds - ✔✔A widow, 75 years old, with no heirs wants stable income with little risk
should have a portfolio constructed mostly of what?
✔✔Common Stock - ✔✔What has provided the highest return over the past 50 years
✔✔Growth Stocks - ✔✔Exhibit high PE Ratios, Low Dividend Yields, high price volatility
✔✔Food, beverage, toiletries - ✔✔Defensive stocks include
✔✔The companies Board of Directors - ✔✔Who determines and declares a companies
dividends
✔✔Corporate Bonds - ✔✔What pays a high yield compared to Treasury or Agency
Bonds?
QUESTIONS AND SOLUTIONS GRADED A+
✔✔Community Property - ✔✔All property that spouses acquire by their joint efforts
during their marriage. Property owned at the time of marriage or acquired by gift or
inheritance and the rents and profits there from is considered "Separate Property"
Subject to Probate.
✔✔1.) Sole Property
2.) Tenants in common
3.) Community Property - ✔✔What forms of Ownership are subject to probate?
✔✔1.) Tenancy by the Entirety
2.) Joint Tenancy (WROS)
3.) Living Trust Property
4.) Beneficiary - ✔✔What forms of ownership AVOIDS Probate?
✔✔1.) Tenancy by the entirety
2.) Community Property - ✔✔What form of ownership can only be held between
spouses?
✔✔Contract Property - ✔✔Any property in which you can name a beneficiary. AVOIDS
probate if a valid beneficiary is named. (ex.POD, TOD, Life Insurance, IRA, Annuity,
Qualified Retirement Plan)
✔✔Living Trust Property - ✔✔Property Legally titled in the name of a living trust.
Subject to the terms of the trust agreement. Owning property in trust separates legal
ownership of the assets from beneficial ownership. AVOIDS PROBATE.
✔✔Time-Weighted - ✔✔_______________ returns show the impact of the investment
manager's security-selection decisions, without being affected by the timing of the cash
flows.
✔✔Dollar Weighted Return - ✔✔The Return actually obtained by the dollars invested,
for the actual time they were invested.
✔✔Dollar Cost Averaging (DCA) - ✔✔The idea behind the approach is to limit the risk
associated with investing at the "wrong time" (market timing) by investing a fixed
amount of money on a regular basis.
✔✔A.) 600 shares
B.) 700 shares - ✔✔Dollar Cost Averaging Exercise:
A.) If you invested $30,000 at one time, in a stock or a mutual fund trading at $50.00 per
share what is the total number of shares you would own?
, NOW
B.) Assume you have a total of $30,000 and you want to invest $10,000 per month. How
many shares would you have?
Month Price Per Share/ NAV
1 $50
2 $100
3 $25
4 $100
✔✔12.06 million - ✔✔What is the Basic Exclusion Amount for 2022
✔✔It is the Basic Exclusion amount + Dead Spouse Unused Exemption - ✔✔What is
the Applicable Exclusion Amount
✔✔$4,769,800 - ✔✔What is the Applicable Credit Amount for 2022
✔✔ Diversification - ✔✔Most effective way to reduce risk in a portfolio
✔✔Common Stockholders - ✔✔Who benefits the most in a highly leveraged company
during periods of rising profits
✔✔Federal level ONLY. EXEMPT from State and Local level. - ✔✔What level are
Treasury Securities taxed at?
✔✔Municipal Bonds - ✔✔What can Pooled Income Funds NOT invest in
✔✔Bonds - ✔✔A widow, 75 years old, with no heirs wants stable income with little risk
should have a portfolio constructed mostly of what?
✔✔Common Stock - ✔✔What has provided the highest return over the past 50 years
✔✔Growth Stocks - ✔✔Exhibit high PE Ratios, Low Dividend Yields, high price volatility
✔✔Food, beverage, toiletries - ✔✔Defensive stocks include
✔✔The companies Board of Directors - ✔✔Who determines and declares a companies
dividends
✔✔Corporate Bonds - ✔✔What pays a high yield compared to Treasury or Agency
Bonds?
