Confidently Practice Online with Free ICWIM Exam Cram

Practice your International Certificate in Wealth & Investment Management certification test with free ICWIM exam cram and take control of your certification preparation. At FreeExamCram, you can practice online for free using real ICWIM exam dumps, verified questions, and expert-designed free online practice tests. Moreover our CISI ICWIM exam cram backed by our confidence-boosting refund guarantee.

Question 1

What financial principle requires an adviser to gather extensive information from a client before making a recommendation?

Options :

A : Disclosure

B : Transparency of trading

C : Risk reduction

D : Know your customer

Answer: D

Question 2

Having prepared recommendations via a report, why would an adviser suggest a face-to-face meeting with their client?

Options :

A : In order to collect fees prior to implementation of the recommendations

B : To establish the client’s tax position

C : So that the client can review the adviser’s qualifications

D : To afford the opportunity to clear up any misunderstandings

Answer: D

Question 3

According to Modern Portfolio Theory (MPT), portfolios below the efficient frontier are not efficient because:

Options :

A : They attract additional charges

B : Risk-free assets are not profitable

C : The investor assumes proportionately higher risk for lower incremental returns

D : A greater return could be achieved for the same risk

Answer: D

Question 4

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

Options :

A : By the analysis of historical share price movements

B : Through the measurement of the highs and lows of each asset

C : By measuring the degree of fluctuation around the mean

D : Through the measurement of share price movements compared to the benchmark

Answer: C

Question 5

A stockbroking firm receives both buy and sell orders for the same security but from different clients. How can they best avoid a conflict of interest?

Options :

A : Withdraw their services for the transaction

B : Place orders as they are received from the clients

C : Openly disclose all orders received to the clients

D : Process the sell orders before the buy orders

Answer: B