AFAI1 Mock Paper 3 — Investment Unit 1
Harder AFAI1 mock: duration, credit spreads, LISA penalty maths, investment-trust discounts and charge compounding. 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 3
This is mock paper 3 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 harder tier: it is deliberately pitched above the live exam, so passing it means you should clear the real thing with room to spare.
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 3 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 3 break down across 11 topic areas:
- LISA5 questions
- Collectives4 questions
- Risk & return4 questions
- Equities3 questions
- Gilts3 questions
- ISAs3 questions
- Charges2 questions
- Corporate bonds2 questions
- Economy2 questions
- Cash1 question
- Property1 question
Try two questions from AFAI1 Mock Paper 3
These come from the free preview of this paper. Answer them, then reveal the explanation.
LISA
Liam withdraws £10,000 from his LISA for a non-qualifying reason. After the 25% government charge, how much does he receive?
- A£9,000
- B£7,500
- C£10,000
- D£8,000
Reveal the answer
B is correct. The 25% charge applies to the gross withdrawal: £10,000 × 75% = £7,500 received. The charge is not limited to the bonus — it can erode contributed capital too.
Gilts
A 30-year gilt with a 2% coupon falls 15% in price when yields rise 0.5%. A 3-year gilt with the same coupon falls 2%. This best illustrates:
- ACurrency risk
- BLiquidity premium only
- CDuration — longer maturity bonds are more sensitive to yield changes
- DCredit risk
Reveal the answer
C is correct. Duration measures interest-rate sensitivity. Longer-dated bonds have more future cash flows affected by a yield change, so prices move more than short-dated bonds for the same yield shift.
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.