Ben purchased 100 shares of LMN stock for $50 per share. At the end of two years, he sold the shares for $70 per share. In the first year, the stock did not pay a dividend. In the second year, the stock paid a $3 dividend. What was the holding period return of Ben’s investment?

The CFP® certification exam is a 6-hour, 170-question, multiple-choice test in the US assessing financial planning proficiency. It includes standalone questions, scenarios, and case studies, focusing on application over recall. Key areas include tax, retirement, estate, and investment planning, designed to test critical thinking and practical application.  Key Aspects of the CFP® Exam Structure: The exam is broken into two 3-hour sessions with a 40-minute break. Content: Questions cover 8 main domains: Financial Planning Process, Risk Management/Insurance, Investment Planning, Tax... Show more

The CFP® certification exam is a 6-hour, 170-question, multiple-choice test in the US assessing financial planning proficiency. It includes standalone questions, scenarios, and case studies, focusing on application over recall.

Key areas include tax, retirement, estate, and investment planning, designed to test critical thinking and practical application. 

Key Aspects of the CFP® Exam
Structure: The exam is broken into two 3-hour sessions with a 40-minute break.
Content: Questions cover 8 main domains: Financial Planning Process, Risk Management/Insurance, Investment Planning, Tax Planning, Retirement Savings/Income, Estate Planning, Psychology of Financial Planning, and Ethics.
 

Question Types:
Stand-alone questions: Direct knowledge or simple application.
Scenario-based questions: A short scenario followed by a few questions.
Case study-based questions: Complex scenarios (8–12 questions per case).
Format: Computer-based, multiple-choice. 

Types of Review Questions/Sample Topics
Ethics: Rules of conduct, such as defining the relationship with a client.
Risk Management: Analyzing insurance needs, such as policy loans or cash value options.
Estate Planning: Handling, and legal documentation like codicils.
Investment/Tax: Portfolio management, capital gains tax implications.

Must also try: CFP Certification Exam: Practice Questions 1

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