Exam ICWIM Topic 1 Question 54 Discussion

Actual exam question for CISI's ICWIM exam
Question #: 54
Topic #: 1
Which index tracking method requires a swap agreement?

Suggested Answer: C Vote an answer

Synthetic replication involves tracking an index using derivatives such as swaps. A swap agreement allows the fund to replicate the index performance without holding the actual underlying assets, reducing transaction costs and increasing efficiency.

by Elva at Oct 13, 2025, 01:11 AM

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