An open-ended fund can create or cancel units based on investor demand.
* Liquidity: Open-ended funds, such as Unit Trusts and OEICs (Open-Ended Investment Companies), continuously issue and redeem shares.
* Pricing: The price is based on the Net Asset Value (NAV).
* Flexibility: The fund manager can adjust the fund size by issuing or cancelling units.
# Reference: FCA Handbook, CISI Wealth & Investment Management (Fund Structures).

The yield curve typically slopes upward because long-term bonds have higher yields than short-term bonds.
* Why is Option C Correct?
* Investors require a higher return (yield) for longer-maturity bonds due to:
* Greater risk exposure (inflation, interest rate changes).
* Opportunity cost (capital is locked up for a longer period).
* This creates an upward-sloping yield curve.
* Why Not Other Options?
* A (Interest rate sensitivity) # While true, it does not explain why the curve slopes upwards.
* B (Resale value risk) # Not a key factor in yield curve structure.
* D (Bond-equity risk comparison) # Bonds react to interest rate expectations, but this does not cause the yield curve slope.
# Reference: CFA Institute (Fixed Income Markets), CISI Wealth & Investment Management.

Short selling is a trading strategy where an investor sells borrowed securities, expecting the price to decline, and then repurchases them at a lower price.
* Why is Option B Correct?
* Short sellers borrow shares, sell them at the current price, and later buy them back at a lower price to return to the lender, profiting from the price difference.
* APT assumes investors can sell short to exploit mispricings in multiple risk factors.
* Why Not Other Options?
* A (Not selling the whole shareholding) # Short selling does not involve owning shares.
* C (Selling & buying back shortly after) # Describes day trading, not short selling.
* D (Selling many securities quickly) # Short selling is not about trading speed, but betting on price declines.
# Reference: CFA Institute (Arbitrage Pricing Theory), CISI Wealth & Investment Management.

* Conflict of Interest Definition:
* A fiduciary position requires prioritizing the client's best interest. When personal or professional interests compete with this duty, it constitutes a conflict of interest.
* Such conflicts can undermine the trust and integrity of the fiduciary relationship.
* Elimination of Other Options:
* A: Discretionary management is unrelated to fiduciary conflicts.
* B: A regulatory breach may occur if the conflict is not disclosed but is not inherently the conflict itself.
* C: Full disclosure is a way to manage conflicts, not the conflict itself.
References:
* ICWIM Module 5: Coverage of fiduciary responsibilities and managing conflicts of interest.

A Certificate of Deposit (CD) is a negotiable bearer security issued by banks, representing a fixed-term deposit with a specified interest rate.
* Key Features of CDs:
* Issued by commercial banks.
* Fixed-term investment (e.g., 3 months to 1 year).
* Can be traded in secondary markets, making them a liquid investment.
* Why Not Other Options?
* A (Treasury Bills) # Issued by governments, not banks.
* B (Commercial Paper) # Issued by corporations, not banks.
* C (Bills of Exchange) # Used for trade finance, not fixed-term deposits.
# Reference: Bank of England (Certificates of Deposit), CISI Wealth & Investment Management.