Examen
CRPC Exam With Correct Solutions
- Cours
- Établissement
CRPC Exam With Correct Solutions
[Montrer plus]
Vendeur
S'abonner
ElevatedExcellence
Avis reçus
Aperçu du contenu
CRPC Exam With CorrectSolutions
Diversification CORRECT ANSWERS Acquiring assets with low or negative correlations to each other with the goal of lowering overall risk
Correlation CORRECT ANSWERS - a relative measure of the degree to which the
returns of two assets move together - range from +1.0 to -1.0
- in practice negative correlations are rare
- the further a correlation is from +1.0, the more diversified
Asset allocation CORRECT ANSWERS - the apportioning of available funds among a number of asset classes in a way that meets the needs of a particular client, dampens the effects of periodic market fluctuations, and meets investment goals
Four steps in the asset allocation process CORRECT ANSWERS 1) select asset classes to be represented 2) determine the percentage that each asset class should represent in the total portfolio
3) Select individual securities
4) Review and rebalance
Strategic Asset Allocation CORRECT ANSWERS - determine asset mix that provides optimal balance of expected risk and ROR - asset classes selected and % weight determined - Used to develop long-term allocation policy
- utilizes rebalancing to maintain targeted weight
Tactical Asset Allocation CORRECT ANSWERS - used to develop short term strategies to exploit changes in market conditions - ofter viewed as a contrarian strategy - periodic revisions of asset mix; moving funds from over valued investments to undervalued investments - market timing strategy
Core-Satellite asset allocation CORRECT ANSWERS 70-80% invested in broad index fund or etfs - remaining satellite consists of actively managed MF's in niches such as sector funds or alt investments like hedge funds
Contrarian Strategy CORRECT ANSWERS Dollar-Cost averaging CORRECT ANSWERS - investing regular amounts at regular intervals
- reduce market timing risk, improve cost per share
Low P/E strategy CORRECT ANSWERS Ratio of 1= fair value
Ratio > 1= overvalued Ratio < 1= undervalued ** The long-term average P/E for stocks is 16
Bond Investment strategies (2) CORRECT ANSWERS 1) Ladder: Owning equal amounts of bonds along with maturities of equal intervals; ex. 50k of bonds with 10k each in 2,4,6,8,10 year maturities 2) Barbell: Owning short-term and long-term bonds, each with a ladder; ex. 100k of bonds with 10k each in 1,2,3,4,5 year maturities and in 16,17,18,19,20 year maturities
Systematic Risk CORRECT ANSWERS P-purchasing power risk
R- reinvestment risk
I- interest rate risk
M- market risk E- exchange rate risk Social Security- Fully insured CORRECT ANSWERS - having 10 years of employment covered by social security; expressed as "40 quarters of coverage"
- Must be fully insured for retirement benefits - fully insured workers are also eligible for disability if he has earned at least 20 work credits in last 10 years
Social Security- currently insured CORRECT ANSWERS - individual must has at least 6 quarters of coverage in the 13-quarter period proceeding the event for which
eligibility is sought - child's benefit, mother/fathers benefits, and lump-sum death benefit are available if a worker is only currently insured at death
Components of SS calculation CORRECT ANSWERS - age he starts - earnings history
SS calculation before full retirement age CORRECT ANSWERS - Payment reduced by 5/9th of 1% for each month filed before FRA, up to 36 months - Payment is reduced by 5/12ths of 1% for each month filed early in excess of 36 months
SS calculation after full retirement age CORRECT ANSWERS - Payment increases by about 8% each year they delay, until maximum year 70
- actual math is 2/3 for each month
Social Security milestones CORRECT ANSWERS Ages
50: disabled survivors can start receiving benefits
60: nondisabled survivors can start receiving 62: earliest one can start receiving benefits at reduced rate
65-67: FRA, depending on birth year
70: delayed retirement age
Social Security income cap CORRECT ANSWERS $15,720
- Those who are under FRA and working will lose $1 SS benefit for every $2 they earn above $15,720
- At FRA it is reduced to $1 for every $3 earned After FRA there is no reduction
Max provisional income for SS CORRECT ANSWERS Single or head of househouse:
Tax-free if provisional income is less than 25k
Filing jointly:
Tax free if provisional income is less than 32k
Provisional income CORRECT ANSWERS Provisional income=AGI(excluding SS) +Nontaxable interest(muni bonds) + 1/2(SS benefit)
Single provisional income SS taxable % CORRECT ANSWERS 25k-34k: 50%
34k+: 85%
Jointly provisional income SS taxable % CORRECT ANSWERS 32k-44k: 50%
44k+:85%
maximum taxable SS amount CORRECT ANSWERS 85% of Total SS benefit
Spousal benefit CORRECT ANSWERS - Pay spouse a maximum of 50% of earners PIA
What tax funds the Social Security Trust Fund CORRECT ANSWERS Payroll taxes; FICA
What is the FICA tax; how is it split up CORRECT ANSWERS 15.3%; The employer and employee each pay 6.2% for old-age, survivors and disability insurance (OASDI) and 1.45% each for hospital insurance
Social Security Wage Base CORRECT ANSWERS $118,500
Covered employment CORRECT ANSWERS Any position that participates in social security system
Les avantages d'acheter des résumés chez Stuvia:
Qualité garantie par les avis des clients
Les clients de Stuvia ont évalués plus de 700 000 résumés. C'est comme ça que vous savez que vous achetez les meilleurs documents.
L’achat facile et rapide
Vous pouvez payer rapidement avec iDeal, carte de crédit ou Stuvia-crédit pour les résumés. Il n'y a pas d'adhésion nécessaire.
Focus sur l’essentiel
Vos camarades écrivent eux-mêmes les notes d’étude, c’est pourquoi les documents sont toujours fiables et à jour. Cela garantit que vous arrivez rapidement au coeur du matériel.
Foire aux questions
Qu'est-ce que j'obtiens en achetant ce document ?
Vous obtenez un PDF, disponible immédiatement après votre achat. Le document acheté est accessible à tout moment, n'importe où et indéfiniment via votre profil.
Garantie de remboursement : comment ça marche ?
Notre garantie de satisfaction garantit que vous trouverez toujours un document d'étude qui vous convient. Vous remplissez un formulaire et notre équipe du service client s'occupe du reste.
Auprès de qui est-ce que j'achète ce résumé ?
Stuvia est une place de marché. Alors, vous n'achetez donc pas ce document chez nous, mais auprès du vendeur ElevatedExcellence. Stuvia facilite les paiements au vendeur.
Est-ce que j'aurai un abonnement?
Non, vous n'achetez ce résumé que pour €20,10. Vous n'êtes lié à rien après votre achat.
Peut-on faire confiance à Stuvia ?
4.6 étoiles sur Google & Trustpilot (+1000 avis)
67418 résumés ont été vendus ces 30 derniers jours
Fondée en 2010, la référence pour acheter des résumés depuis déjà 15 ans