FPQP® module 6 Post-Assessment Final Exam Questions
with All Questions Accurately Answered 2025/2026
An effective investment policy statement should accomplish all of these except - correct
answer guarantee the portfolio will achieve a positive rate of return.
Which one of these would be identified as a threat when developing a SWOT analysis
for a client? - correct answer Inflation may be increasing in the coming years.
Which of the following is NOT one of the three main investment mutual fund objectives?
- correct answer Asset allocation
Which of the following statements about bond pricing is CORRECT? - correct answer
If a bond is issued when interest rates are at 8%, and interest rates decrease to 7%, the
bond would then be selling at a premium
Which of these is an advantage of investing in mutual funds? - correct answer
Diversification
Nefeli has earned 9% on her five-year investment to buy a car. She is in a 22% federal
and a 3% state marginal income tax bracket. The inflation rate has averaged 2.4% over
the past five years. What is her tax- and inflation-adjusted return? - correct answer
4.25%
0.09 * (1-0.25) = 0.0675
(0.0675 + 1) / 1.024) - 1 = 4.25%
Fund T has an average return of 7.5% and a beta of 1.1. Fund W has an average return
of 6.8% and a beta of 0.9. Which fund should you purchase and why? - correct answer
Fund W because it has a higher risk-adjusted return.
Which of the following statements concerning standard deviation is CORRECT? -
correct answer Standard deviation is a measure of the dispersion of returns around the
mean.
, Which of these statements about no-load mutual funds is CORRECT? - correct answer
There are numerous no-load funds with various investment styles and objectives.
Which of the following statements concerning the buy-and-hold investment strategy is
CORRECT? - correct answer This strategy of buying and holding investments
minimizes transaction costs in the buying and selling of securities.
For which of the following investors would U.S. Treasury bills be most appropriate? -
correct answer Jack and Krissy, ages 65 and 63, conservative risk tolerance, need for
liquidity and safety of principal
Fred has the following amounts on deposit at the same bank.
Account. Ownership Balance
Savings. Fred 200k
IRA. Fred. 300k
CD. with spouse. 400k
How much FDIC insurance coverage does Fred have for his accounts at the bank? -
correct answer $650,000
200k + 250k + 200K
Lorenzo, age 42, has a 401(k) plan and is unsure of where to invest. He wants a
diversified portfolio of both stocks and bonds but has no idea about which funds to
choose and how much to put into each fund. He plans to retire in about 19 years and
only wants to choose one fund. Given Lorenzo's situation, which of these funds
available in his 401(k) would be the best choice? - correct answer Target date fund
Which of the following statements about bond pricing is correct? - correct answer If a
bond is issued when interest rates are at 8%, and interest rates decrease to 7%, the
bond would be then selling at a premium.
with All Questions Accurately Answered 2025/2026
An effective investment policy statement should accomplish all of these except - correct
answer guarantee the portfolio will achieve a positive rate of return.
Which one of these would be identified as a threat when developing a SWOT analysis
for a client? - correct answer Inflation may be increasing in the coming years.
Which of the following is NOT one of the three main investment mutual fund objectives?
- correct answer Asset allocation
Which of the following statements about bond pricing is CORRECT? - correct answer
If a bond is issued when interest rates are at 8%, and interest rates decrease to 7%, the
bond would then be selling at a premium
Which of these is an advantage of investing in mutual funds? - correct answer
Diversification
Nefeli has earned 9% on her five-year investment to buy a car. She is in a 22% federal
and a 3% state marginal income tax bracket. The inflation rate has averaged 2.4% over
the past five years. What is her tax- and inflation-adjusted return? - correct answer
4.25%
0.09 * (1-0.25) = 0.0675
(0.0675 + 1) / 1.024) - 1 = 4.25%
Fund T has an average return of 7.5% and a beta of 1.1. Fund W has an average return
of 6.8% and a beta of 0.9. Which fund should you purchase and why? - correct answer
Fund W because it has a higher risk-adjusted return.
Which of the following statements concerning standard deviation is CORRECT? -
correct answer Standard deviation is a measure of the dispersion of returns around the
mean.
, Which of these statements about no-load mutual funds is CORRECT? - correct answer
There are numerous no-load funds with various investment styles and objectives.
Which of the following statements concerning the buy-and-hold investment strategy is
CORRECT? - correct answer This strategy of buying and holding investments
minimizes transaction costs in the buying and selling of securities.
For which of the following investors would U.S. Treasury bills be most appropriate? -
correct answer Jack and Krissy, ages 65 and 63, conservative risk tolerance, need for
liquidity and safety of principal
Fred has the following amounts on deposit at the same bank.
Account. Ownership Balance
Savings. Fred 200k
IRA. Fred. 300k
CD. with spouse. 400k
How much FDIC insurance coverage does Fred have for his accounts at the bank? -
correct answer $650,000
200k + 250k + 200K
Lorenzo, age 42, has a 401(k) plan and is unsure of where to invest. He wants a
diversified portfolio of both stocks and bonds but has no idea about which funds to
choose and how much to put into each fund. He plans to retire in about 19 years and
only wants to choose one fund. Given Lorenzo's situation, which of these funds
available in his 401(k) would be the best choice? - correct answer Target date fund
Which of the following statements about bond pricing is correct? - correct answer If a
bond is issued when interest rates are at 8%, and interest rates decrease to 7%, the
bond would be then selling at a premium.
