CPWA Exam With 100% Correct Answers 2024

$466K Tax Rates - correct answer-3.8% Surtax + 0.9% Wage + 39.6% Qualified Dividends - correct answer-Hold for 60 days during 121 day period Wash Sale Rule - correct answer-Can't buy back within 30 days or within 61 days for reacquisition such as buying same stock or warrant. AGI Charitable Limits - correct answer-Public / Private. 50 / 50 / 30 / 30. 30 / 30 / 20 / 20. Cash / STCG / LTCG / Property Gift & Estate Tax - correct answer-40% / $5.4M Exemption / $2.1M Unified Prospect Theory - correct answer-More Risk Averse 2 times more than Pleasure. S-shaped curve. Paradox of Choice - correct answer-More choices don't improve performance. Can get overwhelmed. Adaptive Market Hypothesis - correct answer-Reconciles Efficient Market Hypothesis in behavioral economics. Cognitive Dissonance - correct answer-Experience mental discomfort or uncertainty. (Ex: Hold losses rather than sell because of mental pain of being wrong, Continue to invest when its already gone down.) Conservatism bias - correct answer-Cling to a view or forecast, behaving too inflexibly when presented with new information. (Ex: May fail to take action on a negative announcement and Might be too slow to sell.) Confirmation bias - correct answer-Cause investors to seek out only information that CONFIRMS THEIR BELIEFS and not information that contradicts it. (Ex: Might create stock concentration because they work there or they become infatuated with certain stocks creating a lopsided portfolio.) Representative bias - correct answer-Make inaccurate decisions when facing complex problems or choices based on the SIMILARITY of details. Illusion of Control - correct answer-Believe that they can CONTROL or influence outcome so it can lead to trading more which end in decreased returns. (Ex: investors who have been successful in business or other professional pursuits feel that they should also be successful in investments.)