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ICWIM Practice Exam Questions and Answers

International Certificate in Wealth & Investment Management

Last Update 4 hours ago
Total Questions : 100

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Question # 1

Which of the following will be a major constraint on a client’s ability to invest and protect against all of the risks that might arise?

Options:

A.  

Age

B.  

Affordability

C.  

Risk aversion

D.  

Tax implications

Discussion 0
Question # 2

A market which employs an electronic order book to match buyers with sellers in strict order by price is known as:

Options:

A.  

Order-driven

B.  

Quote-driven

C.  

On-exchange

D.  

Over-the-counter

Discussion 0
Question # 3

Which currency is most heavily traded on international markets?

Options:

A.  

British pound sterling

B.  

US dollar

C.  

Japanese yen

D.  

Euro

Discussion 0
Question # 4

How does ‘relief at source’ normally operate in relation to overseas dividend income?

Options:

A.  

A reduced rate of withholding tax is levied

B.  

A tax rebate is paid in cash

C.  

A credit is applied against a separate tax liability

D.  

A staggering of the tax levy is granted

Discussion 0
Question # 5

The management of investment portfolios of collective investment schemes, pension funds, insurance funds, hedge funds, and private equity would normally be considered to fall into the scope of:

Options:

A.  

The retail financial sector

B.  

The wholesale financial sector

C.  

Family offices

D.  

Private banking

Discussion 0
Question # 6

Which index tracking method requires a swap agreement?

Options:

A.  

Full replication

B.  

Stratified Sampling

C.  

Synthetic Replication

D.  

Optimisation

Discussion 0
Question # 7

If a hedge fund is engaging in equity arbitrage, it is likely that they are pursuing:

Options:

A.  

An absolute return strategy

B.  

A market-neutral strategy

C.  

An event-driven strategy

D.  

A non-directional strategy

Discussion 0
Question # 8

A bullet bond portfolio can have an advantage over a barbell bond portfolio because:

Options:

A.  

It is always riding the yield curve

B.  

It only invests in short-dated bonds

C.  

The gross redemption yield is always higher

D.  

A bullet portfolio does not require regular rebalancing

Discussion 0
Question # 9

A firm acting as agent makes money by:

Options:

A.  

Profiting from the spread

B.  

Providing advice

C.  

Charging their client a commission

D.  

Trading against its own order book

Discussion 0
Question # 10

It is impossible to diversify against:

Options:

A.  

Currency risk

B.  

Credit risk

C.  

Liquidity risk

D.  

Market risk

Discussion 0
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