Exam for engine

Q60. An inherent disadvantage with a defined contribution pension scheme is that:

Q61. Tax relief that prevents overseas profits from being taxed twice is called:

Q62. Which index tracking method requires a swap agreement?

Q63. An advisor is reviewing a client’s portfolio which has a time horizon of 15 years and is made up primarily of bonds and cash but with some exposure to equities and other higher-risk investments. It is reasonable to believe that the client’s risk appetite is:

Q64. What fiduciary responsibility does a financial adviser have for their clients?

Q65. What is the first action an adviser takes to ensure that their advice is suitable for a client?

Q66. In economics, costs are defined as:

Q67. How does standard deviation provide investors with a measure of historical volatility?

Q68. Standard deviation is used when analysing portfolios because it:

Q69. Which of the following investments is most suitable for a customer who desires income rather than capital gain and who is risk-averse?

Q70. Which of the following is a money laundering offence?

Q71. Which of the following issues is at the heart of fiduciary relationships with clients?

Q72. An investor deposits £1,000 into an account that pays 3% per annum. If interest is compounded annually, how much will be in the account after 5 years?

Q73. Which of the following underlies the pillars of risk tolerance?

Q74. It is impossible to diversify against:

Q75. If two sets of data have a correlation coefficient of 1.0, they possess:

Q76. Which index could be used to measure inflation from the perspective of the seller?

Q77. Which factor forms the basis of an appropriateness test?

Q78. Why do investors demand a risk premium?

Q79. Which currency is most heavily traded on international markets?

Q80. Why might a custom benchmark be required when measuring portfolio performance?

Q81. When a UK-based investor receives overseas equity dividend income, which one of the following types of tax may have been deducted?

Q82. Which of the following is an example of a mandatory corporate action with options?

Q83. Which of the following will be a major constraint on a client’s ability to invest and protect against all of the risks that might arise?

Q84. Which of the following underlies the pillars of risk tolerance?