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Research Methods & Evidence-Based Practice Flashcards

7 cards from real RMA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Research Methods & Evidence-Based Practice flashcards as text

  1. In a retirement income study, the Sharpe ratio is used to evaluate a portfolio by measuring:

    Answer: Risk-adjusted return per unit of total volatility

    The Sharpe ratio divides excess return over the risk-free rate by the portfolio's standard deviation, yielding risk-adjusted performance.

  2. Which research design best establishes causality when studying the impact of a new retirement savings program?

    Answer: Randomized controlled trial

    Randomized controlled trials randomly assign participants to treatment and control groups, making them the gold standard for establishing causal relationships.

  3. An RMA adviser reviews a Monte Carlo simulation showing a 90% probability of plan success. This means:

    Answer: 90 out of 100 simulated scenarios maintained solvency through the planning horizon

    Monte Carlo success probability represents the percentage of simulated scenarios in which the portfolio lasted through the specified time horizon.

  4. When evaluating peer-reviewed research on sequence-of-returns risk, an adviser should first assess:

    Answer: The methodology, sample size, and whether findings were replicated

    Critical appraisal requires examining methodology rigor, adequate sample size, and replication before accepting research conclusions.

  5. A withdrawal rate study uses a 30-year historical rolling period analysis. A key limitation of this approach is:

    Answer: Rolling periods overlap, making the observations statistically dependent

    Overlapping rolling periods share data points, violating the independence assumption and overstating the number of truly independent observations.

  6. In evidence-based retirement planning, the term 'alpha' refers to:

    Answer: Return in excess of what is explained by market exposure (beta)

    Alpha measures a manager's value-added return above the benchmark return predicted by the portfolio's beta exposure.

  7. A researcher reports a p-value of 0.03 for a study on annuity pricing outcomes. This indicates:

    Answer: There is a 3% probability of observing results this extreme if the null hypothesis is true

    A p-value of 0.03 means there is a 3% probability of obtaining the observed results (or more extreme) assuming the null hypothesis is correct.