Most Recent CIMAPRO19-P03-1 Exam Dumps

Prepare for the CIMA P3 Risk Management exam with our extensive collection of questions and answers. These practice Q&A are updated according to the latest syllabus, providing you with the tools needed to review and test your knowledge.

QA4Exam focus on the latest syllabus and exam objectives, our practice Q&A are designed to help you identify key topics and solidify your understanding. By focusing on the core curriculum, These Questions & Answers helps you cover all the essential topics, ensuring you're well-prepared for every section of the exam. Each question comes with a detailed explanation, offering valuable insights and helping you to learn from your mistakes. Whether you're looking to assess your progress or dive deeper into complex topics, our updated Q&A will provide the support you need to confidently approach the CIMAPRO19-P03-1 exam and achieve success.

The questions for CIMAPRO19-P03-1 were last updated on Mar 1, 2026.

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Question No. 1

B is a company with a strong risk appetite.Which of the following are benefits of using the certainty equivalent method of capital investment appraisal in B's case?

AA high level of subjective judgment is required from the decision maker.

BIt avoids the need for the investor to estimate an appropriate discount rate which reflects the risk of the project cash flows.

CBy building a risk adjustment into the discount rate, it takes greater account of risk in later time periods.

DMore risky projects are more likely to be accepted using this method of appraisal.

EThe method produces the most appropriate results in cases where project cash flows do not increase in risk over time.

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Correct Answer: B, C

Question No. 2

A US company has to pay 500,000 for a new machine.

You have the following information on currencies.

EUR1 = 1.2300

EUR 1= USD1.6200

What is the cost of the machine in USD?

Give your answer to the nearest $.

A$658501, $658537

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Correct Answer: A

Question No. 3

The managers of a company are agents for the shareholderstasked with increasing shareholders' wealth. Which of the following will usually increase shareholders' wealth?

AInvesting in projects with the shortest payback period.

BInvesting in projects with positive net present value.

CInvesting in projects with the greatest level of risk.

DNot paying a dividend for several years in order to invest innew projects.

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Correct Answer: B

Question No. 4

M is a listed company. It is hoping to invest in a risky new venture. M has a substantial amount of cash to invest in the venture. M would have found it difficult to raise new finance as it has a high level of gearing. Which of the following statements about stakeholders' conflicting interests are true?

AM's shareholders would only be exposed to the systematic risk from the investment in the new venture.

BM's credit rating is likely to fall as a result of this new venture.

CThe directors would only beexposed to the systematic riskfrom the investment in the new venture.

DM's diversification will mean less risk for the shareholders.

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Correct Answer: A, B

Question No. 5

Why is it potentially useful for an organisation to maintain a risk register?

ATo ensure that recognised risks are adequately managed.

BTo ensure that there are no undiscovered risks.

CTo eliminate all recognised risks.

DTo provide the risk manager with a role.

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Correct Answer: A

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