Practice Quiz

CFP Certified Financial Planner Test Prep - Question List

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6.

To increase the present value of any future cash flow, the interest rate should be:

  1. Increased
  2. Decreased
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7.

The objective of a matching proncipal is:

  1. To provide relevant information in the same period
  2. To accurately tabulate taxes
  3. Recognize expenses in the same period in which income is earned
  4. All of the above
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8.

In general, revenue should be recognized:

  1. When goods have been manufactured
  2. When related expenses incurred to generate the revenue
  3. When it is virtually certain the amount will be collected
  4. When goods have been delivered
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9.

Which of the following is the definition of "pure risk"?

  1. Risk in which the chance of loss is equal to the chance of gain
  2. When the value of risk is uncertain
  3. When the only possible outcome is a loss
  4. When the risk sensitivity depends upon contingencies
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10.

Suppose the expected return on your treasury stock is 9% and the expected return on your market portfolio is 11%. With a beta coefficient of 1.1, the expected return on stock would be:

  1. 13.5%
  2. 12.6%
  3. 11.5%
  4. 10.5%
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