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| Section | Weight | Objectives |
|---|---|---|
| Investment Advice | 21% | - Taxation principles - Portfolio recommendations and review - Advisory process - Communication and documentation |
| Industry Regulation | 10% | - Regulatory authorities and rules - Financial crime prevention - Compliance and governance - Client categorization and protection |
| Lifetime Financial Provision | 18% | - Trusts and foundations - Protection and insurance planning - Estate and succession planning - Retirement planning |
| Economics and Investment Analysis | 10% | - Investment mathematics and statistics - Valuation methods - Macroeconomics and markets - Economic indicators and cycles |
| The Financial Services Sector | 16% | - Ethical standards and professional conduct - Regulatory objectives and frameworks - Structure and participants - Market functions and products |
| Asset Classes | 10% | - Cash and money market instruments - Real estate and alternative assets - Derivatives - Equities - Fixed income securities |
| Investment Management | 15% | - Performance measurement and evaluation - Portfolio construction theories - Risk and return concepts - Investment strategies |
| Fiduciary Relationships | 16% | - Client needs assessment - Conflicts of interest - Risk profiling and suitability - Duties and responsibilities |
1. How do imports and exports affect the Gross Domestic Product (GDP) calculation?
A) Imports are added and exports are subtracted
B) Exports are added and imports are ignored
C) Imports are subtracted and exports are added
D) Imports and exports are ignored as they only affect Gross National Product (GNP)
2. An approach which applies a theoretical price to a company's shares by discounting the company's expected future cash flow into infinity. This statement is describing the:
A) Net asset value
B) Economic value added
C) Dividend valuation model
D) Market value added
3. According to economic theory, firms maximize profit by:
A) Reaching minimum efficient scale (MES)
B) Equating marginal revenue (MR) to marginal cost (MC)
C) Balancing short-run costs against increasing and diminishing returns
D) Creating economies of scale
4. ROCE can be used to establish which of the following?
A) Impact of borrowing costs on company performance
B) The net profitability of the business
C) Returns generated from capital invested in the business
D) Net profit in relation to the cost of sales
5. Critical illness cover will pay a lump sum in the event that a person suffers:
A) A closely defined critical illness
B) A critical illness, however caused
C) A critical illness, provided they survive for 12 months
D) Any critical illness
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: C | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: A |
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