Chapter 3+4

Pregunta 1 de 17

1

Which of the following gives the right, but not the obligation, to sell individual equity at a
specified date for a given price?

Selecciona una de las siguientes respuestas posibles:

  • Future

  • Forward contract

  • Put option

  • Call option

Explicación

Pregunta 2 de 17

1

Which of the following Fitch ratings denotes the LOWEST level of risk for a bond?

Selecciona una de las siguientes respuestas posibles:

  • D

  • BBB

  • C

  • AAA

Explicación

Pregunta 3 de 17

1

Which of the following statements is TRUE about preference shares?

Selecciona una de las siguientes respuestas posibles:

  • The most common type is the deferred share

  • They offer a lower dividend rate than the comparative coupon rate on a debenture

  • Dividends are guaranteed each year

  • In most cases they do not carry voting rights
    International Certificate in Wealth & Investment Management

Explicación

Pregunta 4 de 17

1

Global Depositary Receipts traded on the London Stock Exchange are settled in which
currency?

Selecciona una de las siguientes respuestas posibles:

  • Euros

  • US Dollars

  • Japanese Yen

  • UK Sterling

Explicación

Pregunta 5 de 17

1

Which MAIN class of financial asset is normally considered to be the LEAST liquid?

Selecciona una de las siguientes respuestas posibles:

  • Equities

  • Corporate bonds

  • Government bonds

  • Property

Explicación

Pregunta 6 de 17

1

Which measurement in relation to a fixed interest investment is given by the following
formula?

Selecciona una de las siguientes respuestas posibles:

  • Grossed up redemption yield

  • Gross redemption yield

  • Net redemption yield

  • Running yield

Explicación

Pregunta 7 de 17

1

The running yield of a corporate bond is determined by calculating the coupon as a percentage
of the:

Selecciona una de las siguientes respuestas posibles:

  • market price

  • issue price

  • gross dividend

  • nominal value

Explicación

Pregunta 8 de 17

1

Where the mining costs of a particular metal increase to 105% of that metal's current price,
this indicates that:

Selecciona una de las siguientes respuestas posibles:

  • demand is significantly rising

  • supply has become unreliable

  • there is likely to be a shortage of raw materials

  • production activities are likely to stop

Explicación

Pregunta 9 de 17

1

A call option is an option that generally confers

Selecciona una de las siguientes respuestas posibles:

  • the right to buy

  • the right to sell

  • a contract to sell

  • a contract to buy

Explicación

Pregunta 10 de 17

1

Exchange-traded funds normally operate by:

Selecciona una de las siguientes respuestas posibles:

  • tracking indices

  • tracking an individual security

  • investing in fund of funds

  • investing in manager of managers funds

Explicación

Pregunta 11 de 17

1

Units in a unit trust fund are sold by which of the following?

Selecciona una de las siguientes respuestas posibles:

  • The trustee

  • The registrar

  • The manager

  • The depositary

Explicación

Pregunta 12 de 17

1

What is a key feature of exchange-traded commodities?

Selecciona una de las siguientes respuestas posibles:

  • They are an open-ended collective investment vehicle

  • They are available only to high net worth individuals

  • There is limited exposure to derivative contracts

  • No additional shares can be created by the fund

Explicación

Pregunta 13 de 17

1

Where an investment fund established in the UK satisfies the UCITS directive and is sold in
another EU country, what is the position regarding local taxes and local marketing laws?

Selecciona una de las siguientes respuestas posibles:

  • It will not be subject to either

  • It will be subject to local taxes but not local marketing laws

  • It will be subject to local marketing laws but not local taxes

  • It will be subject to both local taxes and local marketing laws

Explicación

Pregunta 14 de 17

1

The Undertakings for Collective Investment in Transferable Securities Directives (UCITS) cover
investment funds established in which location(s)?

Selecciona una de las siguientes respuestas posibles:

  • England and Wales only

  • UK only

  • UK and France only

  • All European Union countries

Explicación

Pregunta 15 de 17

1

One of the fundamental aims of a traditional hedge fund is to minimise which type of
investment-related risk?

Selecciona una de las siguientes respuestas posibles:

  • Inflation risk

  • Issuer risk

  • Market risk

  • Liquidity risk

Explicación

Pregunta 16 de 17

1

A private equity fund is MOST likely to use a structure similar to that of which of the following?

Selecciona una de las siguientes respuestas posibles:

  • Investment Trust

  • Limited Partnership

  • OEIC

  • SICAV

Explicación

Pregunta 17 de 17

1

If a collective investment scheme is unauthorised, this means that it is specifically banned
from:

Selecciona una de las siguientes respuestas posibles:

  • operating a bid/offer spread

  • holding some of the fund assets in cash

  • being marketed to the general public

  • paying out dividends

Explicación

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