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CTP · Question #390

CTP Question #390: Real Exam Question with Answer & Explanation

The correct answer is D. Performance management and reporting. See the full explanation below for the reasoning.

Question

  • (Topic 4) While revising the investment policy, the CFO performs a sensitivity analysis for the company's cash flow from investments, and identifies that increasing the maximum dollar value for bond purchases will improve returns by 10% on average, all other variables being equal. What issue will the CFO now need to address in the investment policy?

Options

  • AException management
  • BValuation of investments
  • CInternal and external controls
  • DPerformance management and reporting

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