UniGeniusExam CM2

Exam CM2

CM2 practice questions

Original questions in the style of both papers, sorted by syllabus area, each with hints, a worked solution and a marking schedule.

Paper A3 hours 20 minutes, a theory paper answered in Word
Paper B1 hour 50 minutes, a problem-based paper answered in Excel

Past papers

Past papers and examiners' reports moved to the members' learning site on 15 October 2025. The questions here are original and add to them rather than copy them.

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."
  1. (i)

    Describe the weak, semi-strong and strong forms of the Efficient Markets Hypothesis.

    3 marks
  2. (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
  3. (iii)

    Explain one consequence for an investment manager if the semi-strong form holds.

    2 marks

Next step

Take the free diagnosticExpected utility and risk aversion

The CM1 and CM2 exam guide

Questions people ask

Do I need the book of tables?

Paper A questions here give every value of the normal distribution they need. In Paper B questions you use Excel functions, as in the exam.