CFP® Exam Investment Planning Practice Questions
Investment Planning is 17% of the CFP® exam, about 29 of the 170 questions. Practice original questions on vehicles, risk, performance measures, valuation and strategy, with the full working for every calculation.
170 four-choice questions in two timed 3-hour sections, with short scenarios and a case study in each, weighted like the real exam, with a score by domain and an explanation for every answer. 29 of the 170 questions are investment planning.
Or try the free investment planning drill- 49 original investment planning questions with explained answers
- 17% of the exam: domain D, CFP Board topics D.27–D.35
- 29 of the 170 questions in our full mock
A client wants to judge how consistently an active manager beats her benchmark. What does the portfolio's information ratio measure?
What our investment planning questions cover
- Stocks, bonds, mutual funds, ETFs, REITs and options: features, uses and taxation
- Systematic and unsystematic risk, interest rate, reinvestment, purchasing power and liquidity risk
- Standard deviation, beta, correlation, R², Sharpe and Treynor ratios, Jensen’s alpha and the information ratio
- Time-weighted vs dollar-weighted returns, geometric mean and real returns
- Modern portfolio theory, the efficient frontier, CAPM and the security market line
- Bond pricing, yield to maturity, duration and convexity; the constant-growth dividend model
- Investment policy statements, dollar-cost averaging, margin, short sales and option strategies
This list is our own summary of the domain, written for practice. CFP Board publishes the official list of principal knowledge topics.
Drill investment planning, then sit the full mock
170 four-choice questions in two timed 3-hour sections, with short scenarios and a case study in each, weighted like the real exam, with a score by domain and an explanation for every answer. 29 of the 170 questions are investment planning.
Or try the free investment planning drillRules the questions test most
- Use the Treynor ratio or Jensen’s alpha to compare well-diversified portfolios (R² high) and the Sharpe ratio for portfolios that are not well diversified.
- Duration measures a bond’s price sensitivity to yield changes. Duration is higher for longer maturities, lower coupons and lower yields; a zero-coupon bond’s duration equals its maturity.
- The constant-growth model values a stock at D1 ÷ (k − g), where D1 is next year’s dividend, k the required return and g the growth rate.
- A time-weighted return measures the manager; a dollar-weighted return (IRR) reflects the investor’s timing of cash flows.
- A covered call adds income but caps the upside; a protective put sets a floor under a long stock position for the premium paid.
Start the free investment planning drill · Full CFP mock exam · Case study drill · Mixed drill
Common questions
How much of the CFP exam is investment planning?
Investment Planning is 17% of the CFP® exam, the second-largest domain after Retirement Savings and Income Planning. It covers CFP Board topics D.27 to D.35.
Which investment formulas should I know?
CFP Board provides a formula sheet during the exam. Know how to use the Sharpe and Treynor ratios, Jensen’s alpha, CAPM, the constant-growth dividend model, standard deviation of a two-asset portfolio, duration and the real rate of return. Every calculation here shows the inputs.
170 four-choice questions in two timed 3-hour sections, with short scenarios and a case study in each, weighted like the real exam, with a score by domain and an explanation for every answer. 29 of the 170 questions are investment planning.
Or try the free investment planning drillMore CFP exam domains
Domain weights and exam format: CFP Board: What you’ll be tested on (domains and weights) · CFP Board: Exam format, checked November 2026.
Game Assessment Prep is an independent practice site. It is not affiliated with, endorsed by or a registered education program of CFP Board, and CFP Board does not review or endorse these questions. Every question is original; none is taken from CFP Board practice exams or other CFP Board materials.
Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.