Checked 25 October 2026. The format facts were read on the CII’s R02 syllabus and examination guide for 2026/27 on 25 October 2026. The three questions follow UK investment practice and the 2026/27 tax year as at October 2026.
R02 practice questions are most useful in the exam’s own shape: 100 questions in two hours, 72 standard and 28 multiple response. Below are three questions worked through, one of them a multiple response question, with the explanation behind each answer. They come from our own independent R02 practice test, written to the CII’s 2026/27 syllabus. The CII’s own specimen examination is in its R02 examination guide, which you can download from its R02 unit page; use that too. ProSyllabus is an independent study site. It is not affiliated with the Chartered Insurance Institute (CII), and nothing here is official. Every format fact below is quoted or summarised from the CII’s own pages and documents, read on 25 October 2026.
Three worked R02 questions
Each question is printed exactly as it appears in the ProSyllabus CII R02 practice test, with the explanation the test gives after you answer.
Question 1 · LO1 Asset classes: characteristics, risks, behaviour and correlation
An investment trust has a net asset value (NAV) of 250p per share and its shares trade at 230p. What is the trust's premium or discount to NAV, to the nearest 0.1%?
- A premium of 8.0%
- A discount of 8.0%
- A premium of 8.7%
- A discount of 8.7%
Answer: B. The share price is below NAV, so it is a discount: (250 - 230) / 250 x 100 = 8.0%. Dividing by the share price (20 / 230) gives the wrong figure of 8.7% (R02 indicative content 1.1.7).
From the ProSyllabus CII R02 practice test: an original question, not a CII specimen or exam question. It is one of that test’s three free questions.
Question 2 · LO4 The time value of money
An investment returned 7% over a year in which inflation was 3%. Using the exact (Fisher) relationship, what was the real return, to the nearest 0.1%?
- 10.2%
- 3.9%
- 4.0%
- 3.7%
Answer: B. Real return = (1 + nominal) / (1 + inflation) - 1 = 1.07 / 1.03 - 1 = 3.9%. 4.0% is the simple subtraction, 10.2% multiplies instead of dividing, and 3.7% divides the difference by 1.07 instead of 1.03 (R02 indicative content 4.2.2).
From the ProSyllabus CII R02 practice test: an original question, not a CII specimen or exam question. It is one of that test’s three free questions.
Question 3 · LO9 Investment performance · multiple response
A portfolio is worth £100,000 at the start of the year. After six months it is worth £110,000, and the client then adds £50,000. At the end of the year it is worth £152,000. Which of the following statements are correct?
- The return for the first half-year was 10%.
- The return for the second half-year was −5%.
- The time-weighted return for the year was 4.5%.
- The time-weighted return for the year was 2.0%.
- The money-weighted return for the year is higher than the time-weighted return.
More than one statement is correct. Choose the option that lists every correct statement and no other.
- 1, 2 and 4 only
- 1 and 2 only
- 1, 2 and 3 only
- 1, 2, 3 and 5 only
Answer: C. First half: 110,000 ÷ 100,000 − 1 = 10%; second half: 152,000 ÷ 160,000 − 1 = −5%; TWR = 1.10 × 0.95 − 1 = 4.5%. 2.0% is (152,000 − 150,000) ÷ 100,000, which ignores the timing. The £50,000 was invested just before the fall, so the MWR (about 1.6%) is lower than the TWR (R02 indicative content 9.1.3).
From the ProSyllabus CII R02 practice test: an original question, not a CII specimen or exam question. It is one of that test’s three free questions.
| Question | Learning outcome | Answer |
|---|---|---|
| 1 | LO1 Asset classes: characteristics, risks, behaviour and correlation | B: A discount of 8.0% |
| 2 | LO4 The time value of money | B: 3.9% |
| 3 | LO9 Investment performance | C: 1, 2 and 3 only |
The table repeats the three answers for readers on a version of this page that does not show the cards.
How multiple response questions are scored
In the real exam a multiple response question has between four and six options, and the examination guide says: “For each question more than one option is correct. Candidates must select all the correct options to gain the mark.” R02 has 28 of them, more than a quarter of the exam. In our practice test the player takes one answer per question, so each of our multiple response questions lists numbered statements and you choose the one option that names every correct statement and no other; you score only if you pick that option.
Using a timed mock well
| Step | What to do (our suggestion) |
|---|---|
| Time it | Sit 100 questions in two hours in one go: 72 seconds a question on average (our arithmetic). Allow for calculation questions taking longer than recall ones, so do not linger on a definition you know. |
| Use your exam calculator | Work every yield, return and discounting question on the silent, battery or solar powered, non-programmable calculator you will take in, so the keystrokes are familiar on the day. |
| Score by learning outcome | The CII’s own feedback reports the percentage you answered correctly on each learning outcome. Do the same with a mock: outcomes 1 and 6 carry 50 of the 100 questions, so a weak score there costs the most. Compare your total with the 65% standard pass mark. |
| Read every explanation | Including the ones you got right. A right answer for the wrong reason will not hold up when the question is worded differently. |
| Check the tax year | Use material for the 2026/27 syllabus and tax year if you sit between 1 September 2026 and 31 August 2027: for example, VCT income tax relief is 20% in 2026/27, not the 30% of 2025/26. |
The format facts are from the CII’s R02 syllabus and examination guide for 2026/27. Our R02 format guide sets out every learning outcome and its number of questions.
Reading your mock score
| Correct answers out of 100 | Against the 65% standard pass mark | What we would do next (our suggestion) |
|---|---|---|
| 70 or more | Comfortably above | Keep one timed mock for the week of the exam; read the explanations of every question you missed. |
| 65 to 69 | At or just above | Too close to rely on. Work on your two weakest learning outcomes, then sit another timed mock. |
| 60 to 64 | Just below | Go back to the study text for the outcomes where you dropped most marks, especially outcomes 1 and 6. |
| 59 or fewer | Well below | Finish the study text before another timed mock; use a mock to find gaps, not to learn the material. |
The same comparison without the tool. The 65% standard pass mark is from the CII’s R02 unit page; the bands and suggestions are ours. The CII adjusts marks where necessary for the difficulty of each exam version.
Traps to watch for in R02 questions
| Trap | What happens | What to do (our suggestion) |
|---|---|---|
| Negative wording | The examination guide says negative words are emphasised in capitals, for example NOT and CANNOT. Missing one could lead you to choose the wrong answer. | Read the stem twice when it contains a capitalised word, and re-read your chosen option against it. |
| Qualifiers in bold | The guide lists words such as maximum, minimum, main, most, normally and usually, which it emphasises in bold type. | Ask which option is best on the facts given, not which is true in general. |
| Multiple response needs every correct option | The guide says: “Candidates must select all the correct options to gain the mark.” | Judge each option on its own as true or false before you look at how many you have ticked. |
| Last year’s tax figures | R02 examines the 2026/27 tax year, and some figures changed from 2025/26, such as VCT income tax relief and dividend tax rates. | Revise from the CII’s 2026/27 tax tables, the extracts supplied in the exam. |
| Time | Two hours for 100 questions is 72 seconds a question on average (our arithmetic). | Leave a question you cannot settle, as the examination guide suggests, and come back to it with the time left. |
The traps are drawn from the examination information and examination technique sections of the CII’s R02 examination guide for 2026/27 and its tax tables for 2026/27; the suggestions are ours.
Official practice from the CII
The CII’s R02 examination guide for exams from 1 September 2026 to 31 August 2027 can be downloaded from its R02 unit page. It contains a specimen examination with its answer key and the learning outcome each question covers, and the CII suggests allowing two hours for it. The Knowledge Checker revision aid holds multiple-choice questions on the study text, and Revision Extra, sold separately, includes practice questions.
Frequently asked questions
Where can I find CII R02 practice questions?
The CII’s R02 examination guide, on its R02 unit page, contains a specimen examination with answers. Its Knowledge Checker and Revision Extra (sold separately) add practice questions. Independently, the ProSyllabus CII R02 practice test has two full 100-question exams, three questions of which are free and worked through on this page.
Are the questions on this page real R02 exam questions?
No. They are original questions written to the learning outcomes of the CII’s 2026/27 R02 syllabus. They are not CII specimen or exam questions and the CII has not written or endorsed them.
How long should an R02 mock take?
Two hours for 100 questions, the time the real exam allows.
How are R02 multiple response questions marked?
The examination guide says candidates must select all the correct options to gain the mark.
Which tax year do these questions follow?
The 2026/27 tax year, which the 2026/27 R02 syllabus examines, using the CII’s own 2026/27 tax tables for any figure.
More in this series
Sources
- official — CII: R02 examination guide for exams from 1 September 2026 to 31 August 2027 (first published June 2026; current copy dated September 2026), with a specimen examination
- official — CII: R02 Investment principles and risk, examination syllabus, examined from 1 September 2026 to 31 August 2027 (published June 2026)
- official — CII: R02 indicative content 2026/2027 (assessment criteria and indicative content per learning outcome)
- official — CII: Investment Principles and Risk (R02), unit page with the testing position and exam guide updates (read 25 Oct 2026)
- official — CII: tax tables 2026/27 (extracts are supplied in the exam)
official = a document published by the conducting body. reported = a news or coaching site we could not check against an original. Where sources disagree this page says so rather than picking one.
