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CWM_LEVEL_2 Exam Dumps - AAFM Chartered Wealth Manager Questions and Answers

Question # 79

Section A (1 Mark)

A principal weakness of the Dow Theory is:

Options:

A.

Its use of averages instead of indexes.

B.

Its attention to general market movements

C.

That it pays too much attention to primary trends.

D.

The many versions that are available.

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Question # 80

Section B (2 Mark)

Which of the following Biases are exhibited by Passive Preserver?

Options:

A.

I and II

B.

III and IV

C.

I and III

D.

All of the Above

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Question # 81

Section A (1 Mark)

A Wealth Management model in which private client and Institutional Asset Management are kept entirely separate is known as

Options:

A.

Private Client Integrated Model

B.

Sovereign Model

C.

Asset Management Integrated Model

D.

Manufacturing distribution Model

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Question # 82

Section B (2 Mark)

Financial Year 2012-13 shall be considered as

Options:

A.

Assessment Year for the previous year 2011-12 and previous year for the assessment year 2013-14

B.

Previous year for the assessment year 2011-12

C.

Assessment Year for the previous year 2011-12 and previous year for the assessment year 2012-13

D.

Assessment Year for the previous year 2011-12

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Question # 83

Section A (1 Mark)

Income accruing in Sri Lanka and received there is taxable in India in case of

Options:

A.

All Assessee irrespective of residential status

B.

Non resident

C.

Resident but not ordinary resident

D.

Resident and ordinary resident only

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Question # 84

Section B (2 Mark)

Major phases of budgeting process are:

Options:

A.

Assessing Current situation and recommendation of products

B.

Recommendation of products and Planning Financial direction

C.

Assessing current situation and planning financial direction

D.

None of the above

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Question # 85

Section B (2 Mark)

You may need to file your Returns in India under the following circumstances:

Options:

A.

I, II and III

B.

II and III

C.

III and IV

D.

All of the above

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Question # 86

Section A (1 Mark)

Securities with betas less than 1 should have:

Options:

A.

Expected returns higher than the market.

B.

Required returns higher than the market return.

C.

Required returns lower than the market return.

D.

No systematic risk.

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Question # 87

Section A (1 Mark)

A bank is considering making a loan to Jitesh Desai. Jitesh is a commissioned sales broker. Some months he earns as much as Rs 1,00,000 and in other months he earns virtually nothing. Which aspect of evaluating a consumer loan would this be concerned with?

Options:

A.

Character and purpose

B.

Income level

C.

Deposit balance

D.

Employment and residential stability

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Question # 88

Section A (1 Mark)

A _________ portfolio is a well-diversified portfolio constructed to have a beta of 1 on one of the factors and a beta of 0 on any other factor.

Options:

A.

Factor

B.

Market

C.

Index

D.

A and B

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Question # 89

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?

Options:

A.

Credit linked note

B.

Credit option

C.

Credit risk option

D.

Total return swap

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Question # 90

Section A (1 Mark)

A document which is used to hand over the legal powers to sign on legal documents pertaining to the property to someone other than the owner is called_____________

Options:

A.

Lease / Tenancy Agreement

B.

Will

C.

Power of attorney

D.

Family Settlement

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Question # 91

Section B (2 Mark)

In the maturity stage of the industry life cycle

Options:

A.

The product has reached full potential.

B.

Profit margins are narrower.

C.

Producers are forced to compete on price to a greater extent.

D.

A, B, and C.

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Question # 92

Section B (2 Mark)

If the currency of your country is depreciating, the result should be to ______ exports and to _______ imports.

Options:

A.

Stimulate, stimulate

B.

Stimulate, discourage

C.

Discourage, stimulate

D.

Discourage, discourage

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Question # 93

Section B (2 Mark)

Rakhi purchased a piece of land on 25-4-1979 for Rs.80000. This land was sold by him on 23-12-2011 for Rs.1250000. The market value of the land as on 1-4-1981 was Rs.98000. Expenses on transfer were 1.5% of the sale price. Compute the capital gain for the assessment year 2012-13. [CII-12-13: 852,11-12: 785,10-11:711]

Options:

A.

562506

B.

461950

C.

539980

D.

710020

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Exam Code: CWM_LEVEL_2
Exam Name: Chartered Wealth Manager (CWM) Certification Level II Examination
Last Update: Jan 31, 2025
Questions: 1259
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