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ABA CTFA Exam (page: 3)
ABA Certified Trust and Financial Advisor (CTFA)
Updated on: 25-Dec-2025

Viewing Page 3 of 91
CTFA PDF 895 Questions

Simon has experience of dealing with retail clients and is now in training to qualify as a pension transfer specialist. As a consequence, which of the following statements are true?

  1. He must have at least 3 years’ experience as an adviser before his training can commence
  2. His firm is allowed to impose a time limit on completion of the qualification
  3. His supervisor must also be suitably qualified
  4. Once qualified, CPD requirements are waived for 12 months
  5. Once qualified, records of his training must be maintained for at least 5 years

Answer(s): B,C



The efficient frontier curve shows the optimum balance between:

  1. Risk and return
  2. Return and taxation
  3. Taxation and risk
  4. Inflation and return

Answer(s): A



A UK investor holds a portfolio of overseas equities and is concerned about the exchange rate risk. Which strategy could he use to mitigate this risk?

  1. Arbitrage
  2. Gearing
  3. Hedging
  4. Pound cost averaging

Answer(s): C



When constructing a portfolio for a UK resident basic-rate taxpayer who requires an income, the most tax efficient solution would be achieved by:

  1. Only investing in offshore products
  2. Holding fixed-interest funds within a stocks and shares ISA
  3. Purchasing National Savings & Investments (NS&I) Fixed-Interest Savings Certificates
  4. Holding high-yielding equities within a stocks and shares ISA

Answer(s): B



The principal reasons for using the Sharpe ratio when calculating a portfolio's performance are:

  1. It indicates the percentage return above/below the risk-free rate for each unit of risk taken
  2. It will always be quoted on a rolling quarterly basis
  3. A positive Sharpe ratio will always guarantee positive returns
  4. The higher the number, the more a portfolio manager can be said to have added value

Answer(s): A,D



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JUAN 6/28/2023 2:12:00 AM

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