AFAI1 Mock Paper 2 — Investment Unit 1
Standard AFAI1 mock: inflation and interest-rate effects, bond duration, collectives and wrapper planning. 20 standalone questions plus two case studies. 45 minutes, pass mark 21/30.
- Questions
- 30
- Minutes
- 45
- Pass (70%)
- 21/30
Sit it timed
The timer starts when you press the button. You can still finish after it runs out — it is there to mimic exam pressure, not to lock you out.
Free preview: the first 5 of 30 questions, with a timer to match. Unlock the full paper
Answer options are shuffled on every attempt. Your progress is saved as you go, so a refresh won't lose it.
About AFAI1 Mock Paper 2
This is mock paper 2 of 3 for AFAI1, the Investment — Unit 1 unit of CeMAP. The 3 papers in this unit run easier → harder so you can build up to exam standard rather than being thrown in at the deep end. This one sits in the standard tier: it is pitched at roughly live-exam difficulty, with distractors that are all plausible until you read them properly.
Every question carries a written explanation, so a wrong answer tells you which rule you have misread instead of just costing you a mark. Questions are original, written against the 2025/26 five-unit CeMAP syllabus, and cover the material the way the examiner tests it — precise recall where recall is tested, and judgement where the paper wants judgement.
Format, timing and pass mark
AFAI1 Mock Paper 2 follows the live AFAI1 format: 20 standalone questions + 2 case studies × 5 linked questions, in 45 minutes — about 90 seconds a question. Pass mark 21/30 (70%), as in the real assessment. There is no negative marking, so answer everything. 2 case studies carry linked questions: read each scenario once, carefully, before answering any part of it.
What this paper tests
The 30 questions in AFAI1 Mock Paper 2 break down across 11 topic areas:
- ISAs6 questions
- Collectives4 questions
- Risk & return4 questions
- Charges3 questions
- Economy3 questions
- Gilts3 questions
- Corporate bonds2 questions
- Equities2 questions
- Cash1 question
- LISA1 question
- Property1 question
Try two questions from AFAI1 Mock Paper 2
These come from the free preview of this paper. Answer them, then reveal the explanation.
Economy
Rising CPI inflation with unchanged nominal interest rates will generally:
- AAutomatically increase share dividends
- BReduce gilt yields immediately
- CReduce the purchasing power of cash and fixed-income payments
- DIncrease the real return on cash
Reveal the answer
C is correct. Inflation erodes what money can buy. Cash earning less than inflation loses real value; fixed coupons on bonds also buy less unless yields adjust upward.
Gilts
Index-linked gilts differ from conventional gilts because:
- AThey are issued only to companies
- BCoupons and/or redemption values are adjusted in line with inflation (RPI-linked in the UK)
- CThey pay no income
- DThey cannot fall in price
Reveal the answer
B is correct. Index-linked gilts protect against inflation by linking payments to the Retail Prices Index. They still carry interest-rate risk — prices can fall if real yields rise.
Scored under 70%? Revise these next
A near miss is almost always a calculation you cannot do under time pressure, a definition you half-know, or a rule you have never read in the examiner's words. Start with the topic areas above where you dropped marks, then:
- →Drill the calculations on the CeMAP formula sheet — LTV, income multiples, SDLT, APRC, ERCs and rental cover, each worked through.
- →Nail the terminology in the CeMAP glossary — a surprising share of wrong answers are a term you nearly knew.
- →Re-read the syllabus coverage on the AFAI1 exam guide, then sit the next paper in the ramp.
The other AFAI1 mock papers
3 timed mocks for this unit, running easier → harder. Sitting the whole ramp is what moves a borderline score to a comfortable pass.