ICWIM Dumps (V8.02) – Achieve Effective International Certificate in Wealth & Investment Management Exam Success with Verified ICWIM Exam Materials

1. The concept of the Sharpe ratio is to measure the:

A. Amount of performance attributable to a benchmark

B. Return above a risk-free rate

C. Effect the annual charge has on fund performance

D. Ability of the fund manager in different scenarios

2. Once a company reaches the point known as the minimum efficient scale, the "theory of the firm" suggests that the company should:

3. A business may need key person protection because:

4. How would an active fund manager seek to avoid underperforming their peer group when deciding on asset allocation?

5. A rise in living standards will tend to:

6. It is a regulatory requirement for financial advisers to explain any potential additional obligations for clients making a transaction in:

7. 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:

A. The retail financial sector

B. The wholesale financial sector

C. Family offices

D. Private banking

8. If two sets of data have a correlation coefficient of 1.0, they possess:

9. Which of the following underlies the pillars of risk tolerance?

10. An investor deposits £1,000 into an account that pays interest at the rate of 3% per year.

If the interest is credited to the account at the end of the year and the investor leaves the money in the account for 5 years, how much money will be in the account at the end of the fifth year?

11. Why might an expansionary fiscal policy lead to future inflationary pressures?

12. The Arbitrage Pricing Theory (APT) seeks to determine what factors influence security price movements using:

13. "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. Market value added

C. Dividend valuation model

D. Economic value added

14. Offshore foundations are often used as a suitable alternative to which similar type of arrangement?

15. Stablecoins are less prone to price fluctuations because:

16. Which of the following elements would be included in a recommendation report to a client?

17. An economy with two consecutive quarters of negative growth is considered to be in what phase of an economic cycle?

18. When investors wish to sell units in mutual funds, there is a risk of the fund being gated.

Why might this happen?

19. When creating a portfolio for a risk-averse client, why would you select stocks with a beta of less than one?

20. Which type of investment is associated with providing finance to growing companies with the objective of exiting via a profitable stock market listing?

21. The coupon on a bond has been expressed in real terms, rather than as a nominal amount.

This is because:

22. Once an offshore foundation is established, who will normally be responsible for making ongoing decisions regarding the operational use of the foundation's assets?

A. The board of directors

B. The trustees

C. The council

D. The beneficiaries

23. Which index tracking method requires a swap agreement?

24. The UCITS regulations have been integral to introducing a common format for:

25. Personal accident policies will pay out:

26. Why would a composite benchmark be needed to measure portfolio performance?

27. What term describes the process that enables savings institutions to transform into banks?

28. Standard deviation is used when analysing portfolios because it:

29. If someone in a fiduciary position has personal or professional interests that compete with their duty to act in the client’s best interest, this is called:

30. A company recently increased its earnings per share figure by 10%. This means that the company’s:

31. Why is the process of prioritising the protection needs of your client important?

32. If an investor expects to receive a bullet payment, they are likely to be invested in a:

33. What fiduciary responsibility does a financial adviser have for their clients?

34. An execution-only sale usually means a sale where there is an absence of:

35. How does standard deviation provide investors with a measure of historical volatility?