CFP — Certified Financial Planner Investment Practice Questions

1. An investor is considering two investment options. Option A offers a return of 8% while Option B offers a return of 6% with the same risk level. What is the most sensible course of action?

• AA. Invest in Option A
• BB. Invest in Option B
• CC. Invest in neither
• DD. Invest in both options

8. A client has a portfolio that is too heavily weighted in stocks. What type of investment strategy should they consider?

• AA. Growth strategy
• BB. Market timing
• CC. Value investing
• DD. Rebalancing

10. If a client is risk-averse, which investment option should they prefer?

• AA. High-yield stocks
• BB. Index funds
• CC. Commodities
• DD. Corporate bonds