Two online papers in the same session: a theory paper in Word and a problem-based paper in Excel, combined 70:30.
Paper A
3 hours 20 minutes, a theory paper answered in Word
Paper B
1 hour 50 minutes, a problem-based paper answered in Excel
Final mark
70% Paper A and 30% Paper B, both sat in the same session, with one pass mark
What each paper asks
Paper A: questions of varying marks with full working, including short explanations and comments.
Paper B: a problem-based paper that gives you data and asks you to model it in Excel, with everyday functions, charts and Goal Seek.
About 5% of marks test knowledge, 75% application and 20% higher-order skills.
Excel for Paper B
You need Excel working before the exam. Every Paper B question in this course comes with its own data table, ready to copy into a spreadsheet, and a worked solution that says what each column computes.
Try a question
Three claims and the efficient markets hypothesis
Paper A style · Utility · Straightforward · 8 marks
Three employees of Harrowgate Asset Management make the following claims about shares listed on the London Stock Exchange.
Claim 1 (a technical analyst): "By studying charts of past share prices and trading volumes I can identify patterns that earn returns above those justified by risk."
Claim 2 (a fundamental analyst): "By reading company results and broker reports the moment they are published, I can pick shares that beat the market after allowing for risk."
Claim 3 (a director): "Because I sit on the board of a company in takeover talks that have not yet been announced, I could make abnormal profits by trading its shares."
(i)
Describe the weak, semi-strong and strong forms of the Efficient Markets Hypothesis.
3 marks
(ii)
For each claim, state the weakest form of the hypothesis which, if it held, would mean the claim is false. Give a brief reason in each case.
3 marks
(iii)
Explain one consequence for an investment manager if the semi-strong form holds.