Sunday, 17 May 2015

Cima P2 Exam Question No 15

Question No 15:

Place each method of analysing risk and uncertainty against the statement that describes it correctly.



Answer:


Sunday, 10 May 2015

Cima P2 Exam Question No 14

Question No 14:

A company has a cost of capital of 12% and a maximum of $20 million to invest. It has identified three possible investment projects, none of which is divisible, as follows.



Which project(s) should the company invest in?

A. Project 1 only
B. Project 2 only
C. Project 3 only
D. Projects 1 and 3 only

Answer: D

Sunday, 3 May 2015

Cima P2 Exam Question No 13

Question No 13:

To which technique for dealing with risk and uncertainty do ALL of the following statements apply?
• It requires that only one factor is considered at a time.
• It identifies areas which are crucial to a project, which can then be monitored if the project is chosen.
• It does not provide an indication of the likelihood of any change in the factors.
• Following the calculation, it requires the exercising of judgement to decide whether to accept or reject a project.


A. Sensitivity analysis
B.
Probability analysis
C.
Scenario analysis
D.
Adjusting the discount rate to reflect risk.

Answer: A

Sunday, 26 April 2015

Cima P2 Exam Question No 12

Question No 12:

A company has a cost of capital of 12% and a maximum of $20 million to invest. It has identified three possible investment projects, none of which is divisible, as follows.




Which project(s) should the company invest in?

A. Project 1 only
B. Project 2 only
C. Project 3 only
D. Projects 1 and 3 only

Answer: D

Sunday, 19 April 2015

Cima P2 Exam Question No 11

Question No 11:

To which technique for dealing with risk and uncertainty do ALL of the following statements apply?
• It requires that only one factor is considered at a time.
• It identifies areas which are crucial to a project, which can then be monitored if the project is chosen.
• It does not provide an indication of the likelihood of any change in the factors.
• Following the calculation, it requires the exercising of judgement to decide whether to accept or reject a project.


A. Sensitivity analysis
B.
Probability analysis
C.
Scenario analysis
D.
Adjusting the discount rate to reflect risk.

Answer: A

Monday, 13 April 2015

Cima P2 Exam Question No 10

Question No 10:

A company has a cost of capital of 12% and a maximum of $20 million to invest. It has identified three possible investment projects, none of which is divisible, as follows.





Which project(s) should the company invest in?

A. Project 1 only
B. Project 2 only
C. Project 3 only
D. Projects 1 and 3 only

Answer: D

Friday, 10 April 2015

Cima P2 Exam Question No 9

Question No 9:

To which technique for dealing with risk and uncertainty do ALL of the following statements apply?
• It requires that only one factor is considered at a time.
• It identifies areas which are crucial to a project, which can then be monitored if the project is chosen.
• It does not provide an indication of the likelihood of any change in the factors.
• Following the calculation, it requires the exercising of judgement to decide whether to accept or reject a project.

A. Sensitivity analysis
B.
Probability analysis
C.
Scenario analysis
D.
Adjusting the discount rate to reflect risk.

Answer:
A