Latest [Jul 29, 2026] CISI ICWIM Exam Practice Test To Gain Brilliante Result [Q102-Q121]

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Latest [Jul 29, 2026] CISI ICWIM Exam Practice Test To Gain Brilliante Result

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CISI ICWIM Exam Syllabus Topics:

Section	Objectives
Topic 1: Investment Products and Suitability	– Equities, bonds, and collective investments – Taxation and charges overview – Suitability and client profiling
Topic 2: Wealth Management Principles	– Portfolio construction basics – Risk and return concepts – Client investment needs and objectives
Topic 3: Investment and Financial Markets	– Market participants and their roles – Structure of financial markets – Asset classes and investment products
Topic 4: Regulation and Ethics	– Regulatory environment in financial services – Ethical standards in investment advice – Conduct of business and compliance principles

NO.102 The difference between principal trading and agency trading is that an agent:

Will usually execute the order against their own trading book

Does not always offer best execution

Aims to profit from the bid-offer spread

Charges commission on the deal

NO.103 In a perfect free market, price is determined by:

The government

Consumers who are prepared to shop around

Producers manufacturing below marginal cost

The interaction of supply and demand curves

NO.104 A fund manager would be keen to improve the alpha of a fund because:

It has not outperformed the benchmark

The fund will be easier to manage

As alpha improves, so does beta

It will become more attractive to risk-averse clients

NO.105 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

NO.106 Following a fact find, a financial adviser recommended that their client should use a model portfolio on a fettered fund of funds basis. A key drawback to this approach is that:

The client will be prevented from making top ups

The range of available funds will be limited

The volatility range will be significantly expanded

The ability to respond to corporate actions will be removed

NO.107 Who is responsible for developing international standards for combating terrorist financing?

Financial Conduct Authority

United Nations

Wolfsberg Group of Banks

Financial Action Task Force

NO.108 What method is typically used to satisfy a financial adviser’s know your customer obligations?

Issuing a key features document

Conducting a risk benefit analysis

Providing a choice of options

Carrying out a fact find

NO.109 A stockbroking firm receives buy and sell orders for the same security 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

NO.110 For what reason is holding bearer shares potentially disadvantageous?

Investors prefer not being publicly named on a share register

The loss of the certificate might equal loss of the person’s investment

They are more difficult to value

Because it is not possible to sell part of the holding

NO.111 Which of the following issues is at the heart of fiduciary relationships with clients?

Commission

Risk

Service

Suitability

NO.112 Measures of Central Tendency include a method whereby a set of numbers are multiplied and then the nth root of the resulting product is taken. This is known as the:

Arithmetic mean

Geometric mean

Mode

Median

NO.113 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

NO.114 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

NO.115 In normal market circumstances, the yield curve slopes upward. Why is this?

Longer-dated bonds are generally more sensitive to interest rate changes than short-dated bonds because holders are exposed to risk for a longer period

As long as the interest being paid on the government bond is near to the interest rate available on the market, there is little risk that the resale value will be significantly different from the purchase price

The longer an investor ties up capital, the higher the rate of interest they will demand to compensate themselves for the greater risk and opportunity cost on the capital they have invested

Although bonds are generally less risky than equities, their prices are intrinsically linked to the general level of interest rates and expectations of future changes

NO.116 If the fact find process is limited only to the collection of hard facts, this is likely to lead to:

Information quickly becoming out of date

Failure to capture the client’s views on risk

Too much focus on historical performance

The distortion of historical data

NO.117 Which of the following instruments is currently outside of those covered by insider dealing rules?

Bonds

Commodities

Depositary Receipts

Warrants

NO.118 How do imports and exports affect the Gross Domestic Product (GDP) calculation?

Imports and exports are ignored as they only affect Gross National Product (GNP)

Exports are added and imports are ignored

Imports are subtracted and exports are added

Imports are added and exports are subtracted

NO.119 What term is used to describe a situation where clients give investment instructions to a firm without being given advice to do so?

Discretionary

Execution only

Non-discretionary

Robo-advice

NO.120 An approach which applies a theoretical price to a company’s shares by discounting the company’s expected future cash flow into infinity. This statement is describing the:

Net asset value

Market value added

Dividend valuation model

Economic value added

NO.121 How does a negative interest rate policy aim to boost lending?

Interest is not charged on loans

Consumers are paid to borrow money

By discounting the interest rate charged on loans

By penalising banks for holding surplus cash