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1. The effect of gearing within an investment trust company is that it:
A) Raises initial charges
B) Magnifies profits and losses
C) Lowers operating expenses
D) Reduces the trust's premium or discount
2. The arbitrage pricing theory adopts a complex multi-factor approach by:
A) Assuming any identified factors are correlated to each other
B) Including the psychological factors of investment
C) Applying a separate beta to each risk premium
D) Making more assumptions than the capital asset pricing model
3. What is the final stage of the money laundering process?
A) Calculator
B) Layering
C) Integration
D) Arranging
4. How does the role of a platform assist the work of an independent financial adviser IFA?
A) Through the use of robo-advice
B) By making their services directly available to investors
C) It allows advisers to analyse a client's portfolio and take a holistic view
D) Through the provision of discretionary management services
5. Which of the following financial instruments is covered by the insider dealing rules?
A) Metal or oil-based futures
B) Soft commodity options
C) Energy based spread bets
D) Interest rate-based contracts for difference
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: D |
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