ICWIM Exam Dumps : International Certificate in Wealth & Investment Management

Stocks with abeta of less than oneare less volatile than the overall market. Including such stocks in a portfolio helps reduce its overall volatility, aligning with the risk-averse nature of the client.

Easier to understand (A): Simplicity is not a factor in beta selection.

Moves in line with the market (B): A beta of less than one means the portfolio moves less than the market.

High-volatility portfolio (D): This would involve stocks with a beta greater than one, contrary to the client’s risk profile.

References:

International Certificate in Wealth & Investment Management: Beta as a measure of systematic risk and its implications for portfolio construction.

CAPM (Capital Asset Pricing Model) principles on beta and risk.

Definition of Recession:

A recession is defined as two consecutive quarters of negative GDP growth, indicating a sustained economic downturn.

It reflects reduced consumer spending, higher unemployment, and lower production.

Elimination of Other Options:

B (Slump): A slump is a more general term and not a specific phase.

C (Depression): Refers to prolonged and severe economic downturns.

D (Inflationary): Opposite of the scenario described.

References:

ICWIM Module 1: Explanation of economic cycles and recession indicators.

The ongoing charges figure (OCF) of a mutual fund is included in its Key Investor Information Document (KIID). The KIID provides standardized and essential information about a fund’s costs, risks, and performance, ensuring transparency for investors.