CWS Study Guide 2026
Everything you need to pass the CWS exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 CWS Exam Format at a Glance
📚 CWS Topics to Study (21)
✍️ Sample CWS Questions & Answers
1. What is an example of a property insurance?
Homeowners insurance is a prime example of property insurance, which specifically covers physical assets like homes and personal belongings against damage or loss from various perils. This type of insurance protects the dwelling and its contents from events such as fire, theft, or natural disasters. It also typically includes liability coverage for incidents that occur on the property, providing comprehensive protection for a significant asset.
2. What fiduciary duty applies to portfolio management?
Fiduciary duty requires acting in the client's best interest with loyalty, care, and full disclosure of all material facts.
3. What continuing education requirement supports risk assessment competence?
Financial markets, regulations, and best practices evolve constantly, requiring ongoing education for competent practice.
4. Which behavioral bias causes investors to hold losing investments too long while selling winning investments too quickly?
The disposition effect describes the tendency of investors to sell assets that have increased in value while keeping assets that have declined in value, often leading to suboptimal tax and portfolio outcomes.
5. A grantor retained annuity trust (GRAT) is most effective as a succession planning tool when which condition is met?
A GRAT transfers to heirs only the value by which the trust's assets appreciate above the IRS 7520 rate, so strong appreciation results in a large tax-free transfer.
6. Which Medicare part covers inpatient hospital stays and skilled nursing facility care?
Medicare Part A covers inpatient hospital care, skilled nursing facility stays, hospice, and some home health services.