Hi In question 1 of this paper it asks about individual financial planning. The section in the notes on financial planning is very small and focussed on corporate financial planning. First question, could we still be asked such a question within SP5 exam and do you think it likely? Second question, if we were I was thinking about how to answer the question, do you think a suitable approach would be to use the ideas in the acronym A SAD CUTER INVESTOR or would you suggest a different approach? Thank you, Rachael
In Q7(i) of this paper currency risk is included in the list of different types of risk, this is not in the 'standard' list in SP5 currently, did it used to be included? Thank you
It is impossible for me to comment on the likelihood of specific questions in the forthcoming exam. A question on financial planning is a possibility as it is covered in the core reading. I am not sure what you are referring to when you say that there is a "standard list" of risks for SP5. Currency risk seems to be a fairly central risk for many situations that could appear in CP1 or SP5.
Ahh. OK I see what you mean. The "M" stands for market risk, which is the risk caused by volatility of market prices. This risk can be caused by a number of sub risks: equity markets, property markets, currency markets, interest rates, and credit markets being the largest. So I suppose I would see these as relevant to any question that discusses market risks.
