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2026 Statistics
Key Facts: CISI Chartered Wealth Manager Exam
3 units
Consecutive Level 7 Units
CISI
3 hours
Written Exam Per Unit
CISI
Jun & Dec
Exam Windows
CISI
~200 hrs
Study Time Per Unit
CISI
Level 7
Ofqual Diploma in Wealth Management
CISI
The CISI Chartered Wealth Manager qualification (Ofqual Level 7 Diploma in Wealth Management) comprises three consecutive units: Financial Markets, Portfolio Construction Theory and Applied Wealth Management. Each unit is assessed by a three-hour written narrative exam (short-answer, essay and case study), held twice a year in June and December, and is not multiple choice. CISI recommends around 200 hours of study per unit. A Level 4 benchmark qualification such as the Investment Advice Diploma is required before enrolling. This free bank is MCQ knowledge-prep over the same technical syllabus.
Sample CISI Chartered Wealth Manager Practice Questions
Try these sample questions to test your CISI Chartered Wealth Manager exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.
1In the macroeconomic circular flow, an increase in the household savings ratio, all else equal, is most likely to have which immediate effect on aggregate demand?
A.It reduces consumption, lowering aggregate demand in the short run
B.It raises consumption, increasing aggregate demand
C.It has no effect because savings always equal investment
D.It directly increases government spending
Explanation: Aggregate demand comprises consumption, investment, government spending and net exports. A higher savings ratio means households spend a smaller share of income, so consumption and short-run aggregate demand fall (the 'paradox of thrift').
2A central bank raises its policy interest rate to combat rising inflation. Through the monetary transmission mechanism, which outcome is most directly expected?
A.An immediate rise in long-term inflation expectations
B.Higher borrowing costs that dampen consumption and investment
C.An automatic increase in fiscal tax revenue
D.A guaranteed appreciation of all asset prices
Explanation: Raising the policy rate increases the cost of borrowing and the return on saving, reducing credit-financed consumption and investment, which cools aggregate demand and inflationary pressure over time.
3Gross Domestic Product measured by the expenditure approach is best expressed as which of the following?
A.Total tax receipts minus public spending
B.Wages + rent + interest + profit
C.C + I + G + (X - M)
D.Money supply multiplied by velocity
Explanation: The expenditure approach sums consumption (C), investment (I), government spending (G) and net exports (exports X minus imports M). This is the standard national income identity used in economic analysis.
4An economy is described as being in 'stagflation'. Which combination of conditions does this describe?
A.Rapid growth with full employment
B.Deflation accompanied by a current-account surplus
C.Falling prices with strong growth
D.High inflation combined with stagnant growth and high unemployment
Explanation: Stagflation is the simultaneous occurrence of high inflation, stagnant or negative output growth and elevated unemployment. It complicates policy because measures to fight inflation can deepen the slowdown.
5Which statement best describes the relationship between bond prices and yields?
A.They move in opposite directions
B.Yield only affects floating-rate bonds
C.They move in the same direction
D.They are unrelated
Explanation: Bond prices and yields are inversely related: as required market yields rise, the present value of a bond's fixed cash flows falls, so its price declines, and vice versa.
6A bond has a modified duration of 6.0. If market yields rise by 50 basis points, the approximate percentage change in the bond's price is:
A.-6.0%
B.-3.0%
C.+3.0%
D.-0.5%
Explanation: Modified duration estimates price change as -duration x change in yield. Here -6.0 x 0.50% = -3.0%, so the price falls by roughly 3%. Duration gives a first-order linear approximation of interest-rate sensitivity.
7Convexity is added to a duration-based estimate of bond price change primarily because:
A.It converts yield to maturity into current yield
B.Duration overstates gains and losses symmetrically
C.The price-yield relationship is curved, not linear
D.Convexity measures default risk
Explanation: The bond price-yield relationship is convex (curved). Duration is a linear approximation, so convexity is a second-order term that corrects the estimate, improving accuracy for larger yield changes.
8Using the constant-growth dividend discount model (Gordon growth model), a share is expected to pay a dividend of 4.00 next year, the required return is 9% and the perpetual growth rate is 4%. The estimated value per share is:
A.100.00
B.36.00
C.44.44
D.80.00
Explanation: The Gordon growth model gives P = D1 / (r - g) = 4.00 / (0.09 - 0.04) = 4.00 / 0.05 = 80.00. The model values a share as the present value of a perpetually growing dividend stream.
9Which valuation multiple is most appropriate for comparing capital-intensive companies with very different capital structures and depreciation policies?
A.Enterprise value to EBITDA (EV/EBITDA)
B.Price-to-sales (P/S)
C.Price-to-earnings (P/E)
D.Dividend yield
Explanation: EV/EBITDA is capital-structure neutral and excludes depreciation and amortisation, so it allows fairer comparison of firms with different leverage and depreciation policies than equity-only metrics like P/E.
10A UK-listed company announces a rights issue. The primary purpose of a rights issue is to:
A.Return surplus cash to shareholders
B.Raise new equity capital, typically offered to existing shareholders pro rata
C.Convert debt into preference shares automatically
D.Reduce the number of shares in issue
Explanation: A rights issue raises new equity by offering existing shareholders the right to buy additional shares, usually at a discount and in proportion to their holdings, helping preserve their percentage ownership.
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