CFP® Board Updates On May 4, the CFP Board announced the July 2020 CFP Board Exam has been postponed to September. This was in response to the ongoing Covid-19 pandemic. The new pertinent dates are: Examination Period: September 22-29, 2020 Registration Opens: Already in Progress Registration Deadline: September 8, 2020 Early Bird Discount ($725 rate)…

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All of the following are correct about the impact of an increase in the single variable under the Black-Scholes Option Valuation Model EXCEPT: Market price has a positive impact on put options. Strike price has a positive impact on put options. Expiration time has a positive impact on call options Stock volatility has a positive…

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Course: Fundamentals of Financial PlanningLesson 7: Educational Aid and Funding Calculation Student Question: So, is there ever any benefit to choosing a Coverdell ESA over a 529 Plan? It seems the big difference in the two is that the Coverdell has an AGI limit, so why would you just not always steer clients towards 529 Plans since they can be used across state borders? Stephanie Instructor Response: Hi…

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Based on the Jensen performance index, which fund should the investor continue to hold given the following information?   FUND 1 FUND 2 Return on Portfolio 13% 17% Beta .95 1.02 Standard Deviation .18 .22 Risk-free rate of return is 7% Market return is 15% Fund 1 Fund 2 Both Fund 1 and 2 Neither Fund 1 nor 2 CLICK…

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Which of the following statements concerning SEP and Keogh plans is not correct? A SEP must meet fewer reporting requirements than are imposed on a Keogh plan. A SEP is not considered by the IRS to be a qualified plan as is a Keogh plan. A SEP is similar to a defined contribution plan; a…

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Assume that, of the 100 employees eligible for participation in G Company’s qualified pension plan, 20 are highly compensated employees and all 20 participate. What is the minimum number of G Company’s non-highly compensated employees that must participate in G Company’s qualified pension plan to meet the ratio percentage test? 20 50 56 70 CLICK…

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CFP® Board Updates On June 30, 2020, the CFP Board will begin enforcement of the new Code of Ethics and Standards of Conduct. This will coincide with the expected begin date of the new Procedural Rules. For those who are not familiar, the Procedural Rules replace the current Disciplinary Rules and Procedures and the Appeal…

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Which of the following statements concerning the various actuarial assumptions used in estimating an employer’s contributions to a defined benefit pension plan is correct? The higher the assumed rate of investment income, the larger the employer’s assumed contribution rate. The higher the employee turnover or termination rate, the larger should be the employer’s assumed contribution…

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Which of the following statements concerning OASDI disability income benefits is correct? Disability is defined as the inability to perform all major duties of the insured’s own occupation. Unless specifically exempted, a waiting period of 12 months must be satisfied. If the disabled worker is also receiving workers compensation benefits, the full OASDI benefit is…

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Course: Insurance PlanningLesson 6: Commercial Property and Liability Insurance Student Question: Hi Dan – On this review page, the correct answer for Question 2 (below) indicates that insurance will pay only over 97% of replacement cost. However, it says in the chapter that as long as the property is insured for more than 80% of replacement cost, the policy will pay the full cost…

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