Prepare for the Actual CISI level 3 Certificate ICWIM Exam Practice Materials Collection [Q64-Q85]

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Prepare for the Actual CISI level 3 Certificate ICWIM Exam Practice Materials Collection

CISI level 3 Certificate Certified Official Practice Test ICWIM – Dec-2025

NEW QUESTION 64
The Return on Capital Employed (ROCE) ratio can be used to:

Establish trends between accounting periods

Assist in revaluing fixed assets

Determine the need for capital

Calculate the return on ordinary shareholders’ equity

NEW QUESTION 65
Which currency is most heavily traded on international markets?

British pound sterling

US dollar

Japanese yen

Euro

NEW QUESTION 66
What is the standard settlement period in spot currency markets?

T+1

T+2

T+3

T+4

NEW QUESTION 67
When an investment manager manages and makes changes to a portfolio without referring to the client, this is known as:

Execution-only

Advisory dealing

Discretionary

Financial planning

NEW QUESTION 68
Once an offshore foundation is established, who will normally be responsible for making ongoing decisions regarding the operational use of the foundation’s assets?

The board of directors

The trustees

The council

The beneficiaries

NEW QUESTION 69
When creating a portfolio for a risk-averse client, why would you select stocks with a beta of less than one?

So that the portfolio is easier to understand

So that the portfolio moves in line with the market

In order to produce a low-volatility portfolio

To produce a high-volatility portfolio

NEW QUESTION 70
What causes the price of a closed-ended investment company to trade at a premium or discount to net asset value (NAV)?

The level of charges within the fund

The tax status of the fund

Supply and demand

Current level of interest rates

NEW QUESTION 71
Why is the process of prioritising the protection needs of your client important?

To establish the net worth of your client

It provides an opportunity to establish a benchmark

To protect your firm from risk

It allows you and the client to agree on an affordable plan

NEW QUESTION 72
Assuming an upward-sloping yield curve that does not change, how can a fund manager profit from buying a longer-dated bond?

The yield will fall as the bond gets closer to maturity, so the bond can be sold for a profit

As time passes, the yield and price of the purchased bond will rise

The gross redemption yield will rise on the purchased bond as maturity nears

The yield will rise as the bond gets closer to maturity, so the bond can be sold for a profit

NEW QUESTION 73
Which of the following is categorised as a soft commodity?

Copper

Oil

Lumber

Natural gas

NEW QUESTION 74
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?

Withdraw their services for the transaction

Place orders as they are received from the clients

Openly disclose all orders received to the clients

Process the sell orders before the buy orders

NEW QUESTION 75
Back-end loading is often associated with:

Bonds

Collective investments

Equities

Real estate

NEW QUESTION 76
The UCITS regulations have been integral to introducing a common format for:

Company accounts

Corporate actions

Key investor information documents

Trade settlement

NEW QUESTION 77
Which class of mutual fund shares has a charging structure that avoids a front-end load?

Class A

Class B

Class C

Class D

NEW QUESTION 78
An economy with two consecutive quarters of negative growth is considered to be in what phase of an economic cycle?

Recession

Slump

Depression

Inflationary

NEW QUESTION 79
If two sets of data have a correlation coefficient of 1.0, they possess:

No correlation

Weak correlation

Perfect negative correlation

Perfect positive correlation

NEW QUESTION 80
A business may need key person protection because:

The business relies on the input of an individual

It is a very small business

It is to cover a very significant customer

Its profits are very seasonal

NEW QUESTION 81
Which of the following is used to establish an investor’s total return from a bond?

Running yield

Annual coupon

Price-to-book ratio

Yield to maturity

NEW QUESTION 82
How does standard deviation provide investors with a measure of historical volatility?

By the analysis of historical share price movements

Through the measurement of the highs and lows of each asset

By measuring the degree of fluctuation around the mean

Through the measurement of share price movements compared to the benchmark

NEW QUESTION 83
Why is the process of prioritising the protection needs of your client important?

To establish the net worth of your client

It provides an opportunity to establish a benchmark

To protect your firm from risk

It allows you and the client to agree on an affordable plan

NEW QUESTION 84
An investor would regard a company’s Interest Cover ratio as significant because it provides:

An indication of the extent to which the company can service its debts

An indication of what interest rate the company is paying

A breakdown of how much debt a company has in relation to equity

A summary of how much liquid cash an organisation has for funding dividend payments

NEW QUESTION 85
A non-profit, whole-of-life assurance policy, will pay:

A return, linked to the insurance company’s units

A fixed sum provided death occurs within a predetermined time

An amount linked to the prevailing rate of inflation

A fixed sum, chosen at the outset

Ace CISI ICWIM Certification with Actual Questions Dec 18, 2025 Updated: https://www.testsimulate.com/ICWIM-study-materials.html

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