Updated PDF (New 2022) Actual AAFM CWM_LEVEL_2 Exam Questions
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NEW QUESTION 588
Section B (2 Mark)
Vikash has following portfolio with related details given below:
Calculate the portfolio beta?
- A. 1.65
- B. 1.15
- C. 3.45
- D. 1.35
Answer: B
NEW QUESTION 589
Section A (1 Mark)
Which of the following statement is/are true?
- A. None of the Statement
- B. Statement (I) and (II) both
- C. Statement (I) Only
- D. Statement (II) Only
Answer: B
NEW QUESTION 590
Section A (1 Mark)
Adjusted gross income is used in establishing limits on the following deductions, with the exception of
- A. Casualty losses.
- B. Charitable contributions.
- C. Medical expenses.
- D. Employee business expenses reimbursed by the employer.
Answer: D
NEW QUESTION 591
Section A (1 Mark)
Multi period hedging is ________
- A. None of the above
- B. A way to manage qualitative risk over time
- C. A way to manage market risk over time
- D. A way to manage sentimental risk over time
Answer: C
NEW QUESTION 592
Section B (2 Mark)
Which one of the following statements is/are correct?
- A. (i) only
- B. (ii) only
- C. Both are correct
- D. Both are incorrect
Answer: D
NEW QUESTION 593
Section B (2 Mark)
Matrix Ltd has a current ratio of 1.6, and a quick ratio equal to 1.2. The company has Rs 20,00,000 in sales and its current liabilities are Rs 10, 00,000. What is the company's inventory turnover ratio?
- A. 0
- B. 5.2
- C. 5.5
- D. 1
Answer: D
NEW QUESTION 594
Section B (2 Mark)
Calculate the beta on a portfolio from the following data:
- A. 1.5
- B. 1.23
- C. 0.96
- D. 1.29
Answer: C
NEW QUESTION 595
Section A (1 Mark)
General Insurance business was established in India in
- A. 0
- B. 1
- C. 2
- D. 3
Answer: C
NEW QUESTION 596
Section A (1 Mark)
The bank's real estate loan officer should consider which of the following aspects of the customer's loan application carefully when making a home mortgage?
- A. The amount and stability of the borrower's income
- B. The borrower's track record in caring for and managing property.
- C. All of the above are things that need to be looked at carefully
- D. The borrower's available savings and where the down payment is coming from
Answer: C
NEW QUESTION 597
Section A (1 Mark)
Which of the following will be specifically considered while assessing a property and establishing comparisons with other properties?
- A. Marketability
- B. Legal attributes
- C. Location
- D. All of the above.
Answer: D
NEW QUESTION 598
Section B (2 Mark)
Mehak Rana took a loan of Rs 20 Lakh in September 2010 which is payable in 10 years (monthly installments).The rate of interest is 10% p.a.
What would be the remaining principal amount after September 2012?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: C
NEW QUESTION 599
Section B (2 Mark)
As Per Article 12 Double Taxation Avoidance Agreement with US, _____per cent of the gross amount of the royalties or fees for included services as defined in this Article, where the payer of the royalties or fees is the Government of that Contracting State, a political sub-division or a public sector company.
- A. 0
- B. 1
- C. 2
- D. 3
Answer: A
NEW QUESTION 600
Section B (2 Mark)
As a CWM you are considering the following bond for inclusion in the fixed income portfolio of your client:
What will be the duration of this bond? and What will be the effect of the changes on the duration of the bond if the coupon rate is 6% rather than 9%?
- A. 7.33 years, Decrease
- B. 8 years, Increase
- C. 7.012 Years, Decrease
- D. 6.031 years, Increase
Answer: D
NEW QUESTION 601
Section C (4 Mark)
Read the senario and answer to the question.
Ms. Deepika is interested in investments in foreign markets. Her brother is working in one of reputed American company in India and that is offering him some shares under ESOP scheme. This company is not listed in India. It is listed in New York Stock Exchange. Ms. Deepika is asking her manager how this transaction will took place for her brother?
- A. Her brother can invest in American ESOP by taking prior approval from the RBI for this.
- B. Her brother can purchase shares of foreign companies listed abroad under ESOP without any kind of restriction and he can send remittance without any limit.
- C. Her brother can invest in American company but purchasing under ESOP he must be employed in America.
- D. Her brother cannot invest in American shares as he is working its office situated in India.
Answer: B
NEW QUESTION 602
Section A (1 Mark)
A ____________________ tax system takes the same percentage of each person's income, regardless of whether the income is high, medium, or low.
- A. All of the above
- B. Proportional
- C. Regressive
- D. Progressive
Answer: C
NEW QUESTION 603
Section A (1 Mark)
During the past five years, the returns of a stock were as follows:
Calculate the expected rate of return
- A. 7.40%
- B. 9.23%
- C. 6.80%
- D. 8.50%
Answer: A
NEW QUESTION 604
Section A (1 Mark)
_____________ is defined as fairness in spending in US.
- A. Equity
- B. Effectiveness
- C. Efficiency
- D. All of the above are concerned with fairness in spending.
Answer: A
NEW QUESTION 605
Section B (2 Mark)
A bank plans to offer new subordinated notes in the open market next month but knows that its credit rating is being reviewed by a credit rating agency. The bank wants to avoid paying sharply higher credit costs. Which type of credit derivative contract would you most recommend for this situation?
- A. Credit risk option
- B. Total return swap
- C. Credit option
- D. Credit linked note
Answer: A
NEW QUESTION 606
Section B (2 Mark)
Shiva Industries Ltd. earns Rs. 2 per share and distributes 40% of its earnings as cash dividends. Its dividends grew annually at 7%. What will be the stock's price if the required rate is 10%?
- A. Rs. 28.53
- B. Rs. 31.25
- C. Rs. 29.50
- D. Rs. 21.40
Answer: A
NEW QUESTION 607
Section C (4 Mark)
Read the senario and answer to the question.
Mrs. Deepika's brother is impressed with Manav Fashion Ltd. an online clothing firm that focuses on the
18-22 age bracket. Their prices are much lower than their competitors, and the quality is high. Reading about the firm on its web site and in various financial newspapers, her brother has learned that the company plans to expand its clothing lines. The prevailing price of its share is 70 per share. Manav Fashion Ltd. has had recent annual earnings of Rs. 5 per share. Only three other companies have very similar business to Manav Fashion Ltd. and have stock that is traded and there PE ratios are as follows:
Her brother asked Mrs. Deepika to guide him in investing the Manav Fashion Ltd. Getting the query from her brother Mrs. Deepika asks your advice on this matter. As a Chartered Wealth Manager what will be your advice?
- A. Manav Fashion Ltd's share valuation is less than prevailing price, so it is an option not to be availed.
- B. Not to invest in shares of Manav Fashion Ltd
- C. Manav Fashion Ltd's share valuation is less than prevailing price, so it is an option not to miss.
- D. Invest in shares of Manav Fashion Ltd.
Answer: A
NEW QUESTION 608
Section B (2 Mark)
Mr. Nimesh is bullish about ABC Ltd stock. He buys ABC Ltd. at current market price of Rs. 4000 on 4 July.
To protect against fall in the price of ABC Ltd. (his risk), he buys an ABC Ltd. Put option with a strike price Rs.3900 (OTM) at a premium of Rs. 143.80 expiring on 31st July.
What would be the Pay-off of the strategy if the stock closes on 4200 at expiry?
- A. 0
- B. 256.2
- C. 56.2
- D. -143.2
Answer: C
NEW QUESTION 609
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