CISI EXAM SAMPLE PAPER COMPLETE
QUESTIONS AND CORRECT DETAILED
ANSWERS (LATEST UPDATE )
| A+ GRADE.
Units in a unit trust fund are sold by which of the following?
A: The trustee
B: The registrar
C: The manager
D: The depositary - CORRECT ANSWER-C: The manager
A call option is an option that generally confers
A: the right to buy
,B: the right to sell
C: a contract to sell
D: a contract to buy - CORRECT ANSWER-A: the right to buy
Where funds are to be set aside to provide for the future financial
maintenance of a disabled child, this can normally be achieved through
the establishment of a legal document called a
A: codicil
B: trust
C: grant of representation
D: power of attorney - CORRECT ANSWER-B: trust
Which of the following is a factor that must be considered when
constructing a portfolio?
,A: Verification of the clients identity
B: The clients risk tolerance
C: The category of investment service required
D: Performance measurement - CORRECT ANSWER-B: The clients risk
tolerance
The basis on which one person would look after the financial affairs of
another person who does not have the mental capacity to do so
themselves, would be set out in which document?
A: Client agreement
B: Power of attorney
C: Terms and conditions
D: Trust deed - CORRECT ANSWER-B: Power of attorney
, Which mix of investments is most appropriate for a risk averse
investor?
A: 50% commodities and 50% equities
B: 50% cash and 50% gilts
C: 50% foreign exchange and 50% CFD`s
D: 50% property and 50% PIBS - CORRECT ANSWER-B: 50% cash and
50% gilts
Which of the following is a feature in Arbitrage Pricing Theory (APT)?
A: APT relies on identified factors being correlated
B: The variables of APT include real economic factors
C: The principal component of APT is the return on an index of all
shares
QUESTIONS AND CORRECT DETAILED
ANSWERS (LATEST UPDATE )
| A+ GRADE.
Units in a unit trust fund are sold by which of the following?
A: The trustee
B: The registrar
C: The manager
D: The depositary - CORRECT ANSWER-C: The manager
A call option is an option that generally confers
A: the right to buy
,B: the right to sell
C: a contract to sell
D: a contract to buy - CORRECT ANSWER-A: the right to buy
Where funds are to be set aside to provide for the future financial
maintenance of a disabled child, this can normally be achieved through
the establishment of a legal document called a
A: codicil
B: trust
C: grant of representation
D: power of attorney - CORRECT ANSWER-B: trust
Which of the following is a factor that must be considered when
constructing a portfolio?
,A: Verification of the clients identity
B: The clients risk tolerance
C: The category of investment service required
D: Performance measurement - CORRECT ANSWER-B: The clients risk
tolerance
The basis on which one person would look after the financial affairs of
another person who does not have the mental capacity to do so
themselves, would be set out in which document?
A: Client agreement
B: Power of attorney
C: Terms and conditions
D: Trust deed - CORRECT ANSWER-B: Power of attorney
, Which mix of investments is most appropriate for a risk averse
investor?
A: 50% commodities and 50% equities
B: 50% cash and 50% gilts
C: 50% foreign exchange and 50% CFD`s
D: 50% property and 50% PIBS - CORRECT ANSWER-B: 50% cash and
50% gilts
Which of the following is a feature in Arbitrage Pricing Theory (APT)?
A: APT relies on identified factors being correlated
B: The variables of APT include real economic factors
C: The principal component of APT is the return on an index of all
shares
