CFP Research & Evidence-Based Practice 5

Question 1

A CFP practitioner reads two contradictory studies on sequence-of-returns risk. One is a practitioner journal article; the other is a peer-reviewed academic study. Which should generally be weighted more heavily?

Accepted Answer

The peer-reviewed academic study because it underwent independent scientific review

Answer

Peer-reviewed academic studies undergo independent expert evaluation of methods and findings, making them a higher-quality evidence source than practitioner journals that may not have the same review rigor.

Question 2

A planner notices that whenever stock markets decline, client calls about switching to cash increase. The planner avoids recommending cash based on this pattern. This informal observation is best described as:

Accepted Answer

Anecdotal evidence with limited generalizability

Answer

Informal personal observations are anecdotal evidence, which sits at the bottom of the evidence hierarchy and cannot be generalized reliably.

Question 3

Which of the following best defines 'effect size' in financial planning research?

Accepted Answer

The practical magnitude of a difference or relationship between variables

Answer

Effect size quantifies the practical magnitude of a relationship or difference, independent of sample size, helping determine whether a statistically significant result is also practically meaningful.

Question 4

A financial planner implements a behavioral coaching intervention and measures clients' savings rates before and after. No control group is used. The biggest threat to concluding the intervention caused improved savings is:

Accepted Answer

History and maturation threats to internal validity

Answer

Without a control group, external events (history) or natural changes over time (maturation) could explain the improvement, threatening internal validity.

Question 5

A researcher conducting a survey on estate planning intentions sends questionnaires to 1,000 clients; only 120 respond. The primary concern is:

Accepted Answer

Non-response bias, as non-responders may differ systematically from responders

Answer

A low response rate creates non-response bias risk because those who did not respond may have systematically different attitudes or behaviors from those who did.

CFP - Certified Financial Planner Practice Test

CFP - Certified Financial Planner Practice Test

CFP Research & Evidence-Based Practice 5