CFP Exam 2026 with all Correct & 100% Verified Answers
|Actual Complete Exam |Already Graded A+
Financial Planning ✔Correct Answer-A collaborative process that helps maximize a Client's
potential for meeting life goals through Financial Advice that integrates relevant elements of the
Client's personal and financial circumstances.
Automatic Bars from CFP Board ✔Correct Answer-
Suspensions (not Bars) from CFP Board ✔Correct Answer-
Who sets Monetary Policy? ✔Correct Answer-Federal Reserve
Who sets Fiscal Policy? ✔Correct Answer-Congress and the President
Explain the purpose and powers of the Federal Reserve. ✔Correct Answer-
Explain the purpose and powers of Congress in regards to Fiscal Policy. ✔Correct Answer-
Name all of the student loan types. ✔Correct Answer-
Dividend Payout Ratio ✔Correct Answer-Common Stock Dividend / EPS
Return on Equity (ROE) ✔Correct Answer-EPS / Stockholder's Equity per Share
Dividend Yield Formula ✔Correct Answer-Dividend / Stock Price
Price-Earnings Ratio ✔Correct Answer-Price per Share / EPS
Price to Earnings Growth Ratio ✔Correct Answer-Stocks P/E Ratio / 3-5 Year Growth in
Earnings
Dividend Discount Model ✔Correct Answer-V = Next period's dividend / (req. rate of return -
dividend growth rate)
(on formula sheet)
next div = current div(1+growth rate)
Expected Rate of Return ✔Correct Answer-Rate of Return = (Next period's dividend / market
price) + dividend growth rate
Net Present Value NPV ✔Correct Answer-PV of CF - Initial Cost
positive = invest
, 0 = invest
negative = do not invest
Holding Period Return HPR ✔Correct Answer-(Selling Price - Purchase Price +/- CF) / Purchase
price or Equity invested
List all Systematic Risks ✔Correct Answer-PRIME
Purchasing power risk
Reinvestment rate risk
Interest rate risk
Market risk
Exchange rate risk
List all Unsystematic Risks ✔Correct Answer-ABCDEFG
Accounting Risk
Business Risk
Country Risk
Default Risk
Executive Risk
Financial Risk
Government/Regulation Risk
Beta ✔Correct Answer-measures volatility of a security relative to market
1 = market
>1 = more volatile than market
<1 = less volatile than market
only use when R-squared is less than 0.7
Coefficient of Variation ✔Correct Answer-SD / Average Return
useful in determining which investment has more risk.
tells us the probability of actually experiencing a return close to the average return
Four basis premises of Traditional Finance ✔Correct Answer-- markets are efficient
- investors are rational
- the mean-variance portfolio theory governs
- returns are determined by risk
Four basic premises of Behavioral Finance ✔Correct Answer-- markets are inefficient
- investors are irrational
- the Behavioral Portfolio Theory governs
- risk alone does not determine returns
IPS Investment Policy Statement includes: ✔Correct Answer-RR LL TT U
|Actual Complete Exam |Already Graded A+
Financial Planning ✔Correct Answer-A collaborative process that helps maximize a Client's
potential for meeting life goals through Financial Advice that integrates relevant elements of the
Client's personal and financial circumstances.
Automatic Bars from CFP Board ✔Correct Answer-
Suspensions (not Bars) from CFP Board ✔Correct Answer-
Who sets Monetary Policy? ✔Correct Answer-Federal Reserve
Who sets Fiscal Policy? ✔Correct Answer-Congress and the President
Explain the purpose and powers of the Federal Reserve. ✔Correct Answer-
Explain the purpose and powers of Congress in regards to Fiscal Policy. ✔Correct Answer-
Name all of the student loan types. ✔Correct Answer-
Dividend Payout Ratio ✔Correct Answer-Common Stock Dividend / EPS
Return on Equity (ROE) ✔Correct Answer-EPS / Stockholder's Equity per Share
Dividend Yield Formula ✔Correct Answer-Dividend / Stock Price
Price-Earnings Ratio ✔Correct Answer-Price per Share / EPS
Price to Earnings Growth Ratio ✔Correct Answer-Stocks P/E Ratio / 3-5 Year Growth in
Earnings
Dividend Discount Model ✔Correct Answer-V = Next period's dividend / (req. rate of return -
dividend growth rate)
(on formula sheet)
next div = current div(1+growth rate)
Expected Rate of Return ✔Correct Answer-Rate of Return = (Next period's dividend / market
price) + dividend growth rate
Net Present Value NPV ✔Correct Answer-PV of CF - Initial Cost
positive = invest
, 0 = invest
negative = do not invest
Holding Period Return HPR ✔Correct Answer-(Selling Price - Purchase Price +/- CF) / Purchase
price or Equity invested
List all Systematic Risks ✔Correct Answer-PRIME
Purchasing power risk
Reinvestment rate risk
Interest rate risk
Market risk
Exchange rate risk
List all Unsystematic Risks ✔Correct Answer-ABCDEFG
Accounting Risk
Business Risk
Country Risk
Default Risk
Executive Risk
Financial Risk
Government/Regulation Risk
Beta ✔Correct Answer-measures volatility of a security relative to market
1 = market
>1 = more volatile than market
<1 = less volatile than market
only use when R-squared is less than 0.7
Coefficient of Variation ✔Correct Answer-SD / Average Return
useful in determining which investment has more risk.
tells us the probability of actually experiencing a return close to the average return
Four basis premises of Traditional Finance ✔Correct Answer-- markets are efficient
- investors are rational
- the mean-variance portfolio theory governs
- returns are determined by risk
Four basic premises of Behavioral Finance ✔Correct Answer-- markets are inefficient
- investors are irrational
- the Behavioral Portfolio Theory governs
- risk alone does not determine returns
IPS Investment Policy Statement includes: ✔Correct Answer-RR LL TT U
