Chartered Retirement Planning Counselor (CRPC) Practice Exam 2026 - Free CRPC Practice Questions and Study Guide

Net unrealized appreciation refers to the increase in the value of an asset, such as shares of stock, from the time of purchase to its current market value, without the need for a sale to recognize that gain. This concept highlights the potential profit that could be realized if the asset were sold at its current appreciated value, but it remains "unrealized" because the asset is still held and has not been converted into cash through a sale.

This understanding underscores the importance of market fluctuations and investment strategies, as it illustrates the value growth that investors can witness in their portfolios. It distinguishes this appreciation as distinct from actual gains recognized through sale, which would be categorized differently in terms of taxation.

The other options do not accurately capture this definition; for example, a decrease in asset value does not relate to unrealized appreciation, and taxable gains upon sale refer to gains that have been realized. Investment returns on cash dividends refer specifically to income generated from investments rather than price appreciation of the underlying asset.