Friday Five – 14 April – 5 Questions in 5 Minutes

Welcome to this week’s Friday Five – 5 Questions in 5 Minutes Every Friday

What’s this all about?

It’s a bit of Friday Fun where we provide you with 5 questions relevant to a mix of CII exams. The challenge is for you to answer them in 5 minutes. Answers at the bottom of the page.

Questions

IMPORTANT!  These questions relate to examinable tax year 2016/17, examinable by the CII until 31 August 2017.  They do not relate to tax year 2017/18 which is only examinable by the CII from 1 September 2017.

1. Which of the following would be regarded as an advantage of using a platform?
   1. Increased investment returns due to lower taxation
   2. The special offers and greatly reduced charges on offer
   3. The personal investment manager allocated to each investor
   4. The ability to aggregate holdings from several companies on the same system

2. Exon PLC has a beta of 1.2, the expected return of the market portfolio is 6% and the expected return on a Treasury bill is 3.3%. Using the CAPM formula, what is Exon’s expected return?
   1. 9.06%
   2. 8.52%
   3. 6.54%
   4. 9.24%

3. Which of the following would normally be included as a taxable benefit for an employee?
   1. Premiums on a group income protection scheme paid by the employer
   2. Childcare vouchers of £50 per week
   3. Accommodation supplied by the employer for a low rent
   4. A £3 weekly allowance for someone who works from home

4. Joyce registered for Primary protection with a fund at A-day valued at £2m. Assuming a Lifetime allowance of £2.4m at the point when Joyce crystallises her fund, what amount can her fund build up to before any lifetime allowance charge is levied?
   1. £2.0m.
   2. £2.4m.
   3. £2.7m.
   4. £3.2m.

5. Sheila, aged 53, has just taken out an endowment assurance policy. The policy will remain within the qualifying rules if the sum assured on death is at least what percentage of the total premiums payable if the policy ran for its full term?
   1. 65%
   2. 69%
   3. 75%
   4. 80%

Answers

1. D – See R01 Study Text, Chp 2
   Grab our taster mock exam paper for CII R01. Click here to download.

2. C – See R02 Study Text, Chp 3
   Grab our taster mock exam paper for CII R02. Click here to download.

3. C – See R03 Study Text, Chp 1
   Grab our taster mock exam paper for CII R03. Click here to download.

4. D – See R04 Study Text, Chp 2.2
   Grab our taster mock exam paper for CII R04. Click here to download.

5. C – See R05 Study Text, Chp 5
   Grab our taster mock exam paper for CII R05. Click here to download.

How did you find this week’s questions? Did you complete them in 5 minutes? Did you get them all correct? Do you disagree with any?

Do let us know by leaving a comment below – we promise to read them all. (Humour particularly appreciated on a Friday!)