RMA Research Methods & Evidence-Based Practice 3

Question 1

The 'safe withdrawal rate' research pioneered by Bengen (1994) was based primarily on:

Accepted Answer

Historical U.S. stock and bond return data using rolling 30-year periods

Answer

Bengen's foundational 4% rule research analyzed historical U.S. stock and bond returns using overlapping 30-year rolling periods.

Question 2

When applying evidence-based practice, confirmation bias in retirement planning research occurs when an adviser:

Accepted Answer

Selectively emphasizes research supporting a pre-existing conclusion while ignoring contrary evidence

Answer

Confirmation bias leads practitioners to favor information that confirms their existing beliefs while discounting contradicting evidence.

Question 3

A meta-analysis of retirement spending studies is most valuable because it:

Accepted Answer

Pools results from multiple studies to increase statistical power and generalizability

Answer

Meta-analyses combine data across multiple studies, increasing sample size, statistical power, and the reliability of conclusions.

Question 4

In the context of retirement research, 'internal validity' refers to:

Accepted Answer

The degree to which a study accurately measures what it intends to measure and supports causal conclusions

Answer

Internal validity is the degree to which a study's design supports causal inference and accurately captures the relationship under study.

Question 5

Which statistical measure is most appropriate for comparing variability in annual returns across two retirement portfolios with different mean returns?

Accepted Answer

Coefficient of variation

Answer

The coefficient of variation (standard deviation divided by mean) normalizes dispersion, allowing valid comparison of variability across datasets with different means.

RMA Practice Test

RMA Practice Test

RMA Research Methods & Evidence-Based Practice 3