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CSI Financial Planning II (FPII) Sample Questions:
Genki is reviewing the following portfolios:
* Portfolio W earns 18% with a standard deviation of 25%.
* Portfolio X earns 19% with a standard deviation of 30%.
* Portfolio Y earns 21% with a standard deviation of 20%.
* Portfolio Z earns 23% with a standard deviation of 22%.
The risk-free rate is 6%. Which portfolio performs the best on a risk-adjusted basis?
- A. Portfolio Y.
- B. Portfolio Z.
- C. Portfolio W.
- D. Portfolio X.
Correct Answer: B 🗳️
Explanation: Only visible for BootcampPDF members. You can sign-up / login (it's free).
Evelyn spends a great deal of her money on vacations. Consequently, her net cash flow is not as much as she would like. What is the best strategy to help Evelyn improve her cash flow?
- A. Increase liquidity of her savings.
- B. Prioritize and control her spending.
- C. Reduce non-discretionary expenses.
- D. Set up a separate account to save for her next vacation.
Correct Answer: B 🗳️
Explanation: Only visible for BootcampPDF members. You can sign-up / login (it's free).
What is a disadvantage of a corporation?
- A. At death of a shareholder, there may be a potential for double taxation.
- B. Owners are not able to limit their personal liability for business debts.
- C. There are no government grants available to corporations.
- D. Attribution rules apply to loans to a small business corporation.
Correct Answer: A 🗳️
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What is the tax treatment on disability assistance payments for Registered Disability Savings Plans?
- A. Disability assistance payments are fully taxable based in the hands of the recipient.
- B. Disability assistance payments are not taxable income.
- C. Disability assistance payments are taxed on the grant and income earned portions.
- D. Disability assistance payments reduce government-funded disability benefits and tax credits.
Correct Answer: C 🗳️
Explanation: Only visible for BootcampPDF members. You can sign-up / login (it's free).
Roy gifted his nephew Charles, age 16, shares for his birthday. The managed portfolio will generate both dividends, and capital gains and losses. What will be Roy's future tax implications, with respect to this transfer, until Charles reaches the age of majority?
- A. No gains, losses or income are attributed to Roy.
- B. Capital gains are attributed to Roy.
- C. Dividend income is attributed to Roy.
- D. Capital losses are attributed to Roy.
Correct Answer: C 🗳️



