Friday Five Focus on Investments – 10 November – 5 Questions in 5 Minutes

Friday Five Focus on Investments – 5 Questions in 5 Minutes Every Friday

What’s this all about?

Each week, we ask questions relating to one of these topics: Investments, Taxation, Pensions, Protection, or Regulation. This week, our Friday Five is relevant to Investments; this is useful as you prepare for any of the CII’s R02, AF4, or J10 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 2023/24, examinable by the CII until 31 August 2024.

1. Where investors demand higher yields for holding longer-term bonds the yield curve is said to be
   1. normal.
   2. flat.
   3. inverted.
   4. reversed.

2. Limetree has earnings per share of 18.24p and a dividend per share of 7.52p. What is their dividend cover?
   1. 2.43 times.
   2. 2.43%.
   3. 4.12 times.
   4. 4.12%.

3. Numerous studies have attempted to determine the validity of the Efficient Market Hypothesis. Within this, which of the following markets is regarded as the most efficient?
   1. Venture capital.
   2. Small caps.
   3. Large caps.
   4. Less well-known stocks.

4. The main phase of the business cycle characterised by sluggish output growth and weak company profits with both interest rates and inflation falling is
   1. recovery.
   2. boom.
   3. slowdown.
   4. recession.

5. There are widely published indices for all major overseas markets, which provide an indication of local market performance. Which of the following indices is a real-time value-weighted index of the largest stocks on the Euronext Paris?
   1. The DAX 40.
   2. The Dow Jones.
   3. The Nikkei 225.
   4. The CAC 40.

Answers

1. A – See R02 Study Text, Chp 1
   Grab our taster mock exam paper for CII R02. Click here to download.

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

3. C – See R02 Study Text, Chp 4
   Grab our taster mock exam paper for CII R02. Click here to download.

4. D – See J10 Study Text, Chp 8
   Grab our taster mock exam paper for CII J10 Click here to download.

5. D – See J10 Study Text, Chp 11
   Grab our taster mock exam paper for CII J10. 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?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.