R02 Mock Exam

CII R02 Investment Principles
& Risk

249 realistic practice questions covering every learning outcome — asset classes, portfolio construction, risk profiling and market dynamics — with instant explanations.

249 questions 9 learning outcomes Updated 2025/26 100 MCQs · 2 hours Pass mark 65%

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What you get

Everything you need to pass R02

Structured practice covering investments, risk and portfolio theory — written to the standard of the real exam.

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249 exam-standard questions

Every question written to match CII style and difficulty — covering all asset classes, collective investments and portfolio theory.

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Calculation questions included

Yield, P/E ratios, real returns, Sharpe ratio, standard deviation — all the calculation types that appear in the real R02 paper.

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Practice by learning outcome

Drill any of the 9 LOs individually to target your weaknesses — ideal in the final week before the exam.

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Instant explanations

Every question includes a detailed explanation of why each answer is right or wrong — not just the correct letter.

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Timed exam mode

Simulate the real 2-hour paper with a 100-question timed test. Get your score and full explanations after.

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Updated for 2025/26

MiFID II, ISA rules, current tax treatment of investments and the latest market context — all reflected in our question bank.

Sample question

See the question quality

Every question is written to the standard you'll face in the real R02 exam.

R02 · LO2 Asset classes — bonds and interest rate risk

An investor holds a 12-year gilt purchased at £105. If market interest rates subsequently rise, what is the most likely immediate effect on the market price of the gilt?

A The price will fall below £105
B The price will rise above £105
C The price will remain fixed at £105
D The price will rise to par value

Correct answer: A

When market interest rates rise, existing fixed-income securities become less attractive relative to new issues offering higher coupons, so their prices fall. A 12-year gilt has significant duration and is therefore highly sensitive to rate changes — the longer the maturity, the greater the price fall for a given rise in rates. The inverse relationship between bond prices and interest rates is one of the most tested concepts in R02.

Syllabus coverage

All 9 R02 learning outcomes

Questions mapped to every learning outcome so you can see exactly where you stand.

LO1The investment environment — markets, indices and economic drivers

LO2Asset classes — equities, bonds, property, cash and alternatives

LO3Collective investments — OEICs, unit trusts, investment trusts and ETFs

LO4Pension and retirement investments — wrappers and tax treatment

LO5Risk — types, measurement, attitude to risk and risk profiling

LO6Portfolio construction — diversification, correlation and asset allocation

LO7Investment performance — measures, benchmarks and attribution

LO8Tax treatment of investments — ISAs, onshore/offshore bonds

LO9Regulation of investment business — MiFID II, suitability and best execution

Common questions

R02 exam FAQs

Everything you need to know before you start revising.

The CII R02 exam contains 100 multiple-choice questions to be answered in 2 hours.

The pass mark for R02 is 65%.

R02 covers investment markets, asset classes, collective investments, portfolio construction, risk profiling, investment performance measurement and the taxation of investments.

Common calculations include yield, P/E ratios, real returns after inflation, standard deviation and the risk-adjusted return measures such as the Sharpe ratio.

CII R02 Investment Principles& Risk