AIF UPDATED ACTUAL EXAM PAPER 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◉ The "policy portfolio" is:
Less important than the "pricing portfolio" from a fiduciary
perspective
Closely associated with alpha
The strategic asset allocation generally reflected in a sound IPS
Found in the northwest quadrant of the efficient frontier. Answer:
The strategic asset allocation generally reflected in a sound IPS
◉ The Accumulated Benefit Obligation (ABO) pertains to:
A person responsible for managing a 401k plan
How ERISA is specifically contradicted by UPIA
Defined contribution plans
,Defined benefit (DB) plans. Answer: DB Plans
◉ Which of the following does not automatically entail the
assumption of fiduciary responsibility?
"Provision of comprehensive and continuous investment advice
Delivery of ongoing comprehensive financial planning for direct or
indirect compensation
Serving as a third-party administrator for an ERISA plan
Exercise of discretionary trading authority". Answer: Serving as a
TPA to ERISA plan
◉ Which of the following is permitted to receive revenue sharing
payments?
Investment Advisors
Directed non-fiduciary trustees
Investment Managers who have investment discretion
,Plan Sponsor Investment Committee members. Answer: Plan
sponsor investment Committee Members
◉ An active approach to investing:
Is recommended to help assure prudent expert responsibilities are
met
Should be based upon the conviction that any additional cost can
reasonably be expected to be exceeded by higher returns
Is generally considered a breach of fiduciary prudence
Assumes markets are efficient and cost minimization is a crucial
concern. Answer: Should be based upon the conviction that any
additional cost can reasonably be expected to be exceeded by higher
returns
◉ fi360 has established recommended minimum due diligence
criteria for selecting investments, which includes all of the following
EXCEPT:
Beta
, Manager tenure
Regulatory oversight
One-, three, and five-year performance. Answer: Beta
◉ Alpha is a measure of the difference between a portfolio's actual
returns and its ___________________, given its level of risk as defined by
Beta (β).
Peer group returns
Expected return
Worst-case scenario
Prior-year return. Answer: Expected Return
◉ All of the following would normally be considered a fiduciary
EXCEPT:
QUESTIONS WITH SOLUTIONS GRADED A+
◉ The "policy portfolio" is:
Less important than the "pricing portfolio" from a fiduciary
perspective
Closely associated with alpha
The strategic asset allocation generally reflected in a sound IPS
Found in the northwest quadrant of the efficient frontier. Answer:
The strategic asset allocation generally reflected in a sound IPS
◉ The Accumulated Benefit Obligation (ABO) pertains to:
A person responsible for managing a 401k plan
How ERISA is specifically contradicted by UPIA
Defined contribution plans
,Defined benefit (DB) plans. Answer: DB Plans
◉ Which of the following does not automatically entail the
assumption of fiduciary responsibility?
"Provision of comprehensive and continuous investment advice
Delivery of ongoing comprehensive financial planning for direct or
indirect compensation
Serving as a third-party administrator for an ERISA plan
Exercise of discretionary trading authority". Answer: Serving as a
TPA to ERISA plan
◉ Which of the following is permitted to receive revenue sharing
payments?
Investment Advisors
Directed non-fiduciary trustees
Investment Managers who have investment discretion
,Plan Sponsor Investment Committee members. Answer: Plan
sponsor investment Committee Members
◉ An active approach to investing:
Is recommended to help assure prudent expert responsibilities are
met
Should be based upon the conviction that any additional cost can
reasonably be expected to be exceeded by higher returns
Is generally considered a breach of fiduciary prudence
Assumes markets are efficient and cost minimization is a crucial
concern. Answer: Should be based upon the conviction that any
additional cost can reasonably be expected to be exceeded by higher
returns
◉ fi360 has established recommended minimum due diligence
criteria for selecting investments, which includes all of the following
EXCEPT:
Beta
, Manager tenure
Regulatory oversight
One-, three, and five-year performance. Answer: Beta
◉ Alpha is a measure of the difference between a portfolio's actual
returns and its ___________________, given its level of risk as defined by
Beta (β).
Peer group returns
Expected return
Worst-case scenario
Prior-year return. Answer: Expected Return
◉ All of the following would normally be considered a fiduciary
EXCEPT:
