AFAI2 Mock Paper 3 — Investment Unit 2
Harder AFAI2 mock: conflicting ATR and capacity, efficient frontier concepts, Sharpe comparison, vulnerable customers and complex suitability. 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 AFAI2 Mock Paper 3
This is mock paper 3 of 3 for AFAI2, the Investment — Unit 2 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
AFAI2 Mock Paper 3 follows the live AFAI2 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 AFAI2 Mock Paper 3 break down across 7 topic areas:
- MPT8 questions
- Consumer Duty6 questions
- Asset allocation5 questions
- Suitability5 questions
- Risk profiling3 questions
- Platforms2 questions
- ISAs1 question
Try two questions from AFAI2 Mock Paper 3
These come from the free preview of this paper. Answer them, then reveal the explanation.
Risk profiling
Nina's 'adventurous' ATR combined with cognitive impairment and debt most strongly indicates:
- AProceed with crypto as requested
- BVulnerability and capacity for loss likely override the questionnaire — cautious approach required
- CATR always determines the portfolio
- DIgnore Consumer Duty
Reveal the answer
B is correct. Vulnerability (health, bereavement, reliance on others) requires extra care. High-interest debt and no emergency fund severely limit capacity regardless of stated ATR.
Consumer Duty
Recommending unsuitable high-risk crypto to Nina would breach Consumer Duty because:
- AIt would likely fail good outcomes on products/services, understanding and support for a vulnerable customer
- BVulnerable customers cannot invest
- CCrypto is always illegal
- DDuty applies only to banks
Reveal the answer
A is correct. The Duty requires products to meet needs, fair value, clear understanding and appropriate support. Exploiting or ignoring vulnerability is a serious conduct risk.
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 AFAI2 exam guide, then sit the next paper in the ramp.
The other AFAI2 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.