Sample Questions –
The questions below are taken from our mock exams and designed to provide you with an indication
of the nature and level of the IMC exam. For both unit 1 and unit 2, one question is shown from each
topic area.
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Guidelines and tips
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Community
Ask the community
Ask the community for help and clear up your study doubts
University Rankings
Discover the best universities in your country according to Docsity users
Free resources
Our save-the-student-ebooks!
Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors
imc-example-questions.pdf, Lecture notes of Wealth Management
Sample Questions –. The questions below are taken from our mock exams and designed to provide you with an indication of the nature and level of the IMC exam ...
Typology: Lecture notes
2021/2022
1 / 7
This page cannot be seen from the preview
Don't miss anything!
Related documents
Partial preview of the text
Download imc-example-questions.pdf and more Lecture notes Wealth Management in PDF only on Docsity!
Sample Questions –
The questions below are taken from our mock exams and designed to provide you with an indication of the nature and level of the IMC exam. For both unit 1 and unit 2, one question is shown from each topic area.
Unit 1 – Sample questions
- Which of the following is least likely to be considered a solution to the ‘principal– agency’ problem’?
(a) Shareholder activism
(b) Incentivising managers in the form of shares
(c) Monitoring of managers by the board of directors
(d) Firms operating with dual capacity
Ans: (d)
- Wilfred is an investment manager for a wealth management firm. He receives research from analysts at his firm recommending a ‘sell’ for shares in a company called Techy Tech Industries plc. He then sells his own personal holding of Techy Tech shares before disseminating the recommendation to his clients. In doing so he has:
(a) Not violated any of the CFA Standards of Professional Conduct
(b) Violated Standard VIB: Priority of transactions
(c) Violated Standard VB: Communication with clients and prospective clients
(d) Violated Standard IIIC: Suitability
Ans: b
- Which of these factors would allow a company to be treated as a per se professional client in relation to MiFID business?
(a) Own funds of €2.5 million and a balance sheet total of €21 million
(b) Balance sheet total of €11 million and net turnover of €50 million
(c) Net turnover of €45 million and own funds of €1 million
(d) Net turnover of €25 million and a balance sheet total of €45 million
Answer: a
- What is the administrator of a bankrupt person's financial affairs called?
(a) Official registrar
Unit 2 Sample Questions.
- What is the present value of £5,000 which will be received in four year's time if the discount rate is 8% per annum?
(a) £3,402.
(b) £3,675.
(c) £3,969.
(d) £6,802.
Ans: b
- A pure monopolist maximises profits where:
(a) Marginal costs are greater than average costs
(b) Marginal revenue just equals marginal cost
(c) Marginal revenue is greater than marginal cost
(d) The average cost curve is upward sloping
Ans: b
- Which of the following is NOT a leading indicator of economic activity?
(a) Unemployment
(b) Stock market
(c) Money supply
(d) Credit growth
Ans: (a)
- XYZ Plc has an operating profit of £6m, issued share capital of £20m, long-term debts of £12m and reserves of £8m. What is XYZ's return on capital employed?
(a) 30%
(b) 23.3%
(c) 18.7%
(d) 15%
Ans: (d)
- Given an industry average P/E ratio of 12, a company JKL had earnings per share last year of £0.25. What would be a fair valuation of the JKL based on P/E?
(a) £1.
(b) £3.
(c) £4.
(d) £48.
Ans: (b)
- A bond paying an 8% coupon with exactly 2 years to maturity is priced at £96.53 with a face value of £100. What is the internal rate of return ignoring tax?
(a) 9%
(b) 10%
(c) 11%
(d) 12%
Ans: (b)
- Which of these ‘Greeks’ is commonly used to denote the sensitivity of option price with respect to interest rates?
(a) Theta
(b) Gamma
(c) Rho
(d) Vega
Ans: c
(c) £24.28m
(d) £25.08m
Ans: c