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CWM_LEVEL_2 Exam Dumps - AAFM Chartered Wealth Manager Questions and Answers

Question # 109

Section C (4 Mark)

Read the senario and answer to the question.

Assuming that Mahesh owns a building which he insures along with its contents for Rs. 12 lakh. However the market value of the building and its content is Rs. 15 lakh. Assuming that the building along with its contents is partially destroyed by fire and the loss assessed of Rs. 1 lakh what is the amount of money insurance company would pay as claim reimbursement to Mahesh?

Options:

A.

Rs. 85000

B.

Rs. 82000

C.

Rs. 80000

D.

Rs. 95000

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Question # 110

Section C (4 Mark)

Read the senario and answer to the question.

Harish wants to know what amount is eligible for deductible u/s 24 of Income Tax for housing loan repayments in computation of his Income tax liability for AY 2010-11.

Options:

A.

Rs. 1,43,080

B.

Rs. 1,50,000

C.

Rs. 1,44,270

D.

Rs. 1,43,680

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Question # 111

Section A (1 Mark)

Select the correct statement regarding the market portfolio. It:

Options:

A.

Is readily and precisely observable.

B.

Is a risky portfolio.

C.

Is the lowest point of tangency between the risk-free rate and the efficient frontier

D.

Should be composed of stocks or bonds.

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Question # 112

Section A (1 Mark)

Manish is thinking of acquiring some shares of ABC Ltd. The rate of returns is as follows:

Calculate the expected return on the investments

Options:

A.

7.6

B.

9.5

C.

5.2

D.

1.6

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Question # 113

Section C (4 Mark)

Read the senario and answer to the question.

Mr. Bhaitia will continue to invest Rs. 10,000 in his PPF a/c at the beginning of each year till his retirement. Then calculate how much he has to save extra at the end of per month in a scheme to achieve his retirement corpus with a yield of 10%?

Options:

A.

Rs. 4507

B.

Rs. 3714

C.

Rs. 3745

D.

Rs. 5567

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Question # 114

Section B (2 Mark)

Basic Idea of retirement benefit plan is

Options:

A.

To meet lump sum needs immediately at retirement

B.

Provide regular income during retirement plan

C.

Take care of inflation

D.

All of the above

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Question # 115

Section A (1 Mark)

The basic competitive factors facing industries include all of the following except:

Options:

A.

Bargaining power of suppliers

B.

Threat of government regulation

C.

Rivalry between existing competitors

D.

Threat of substitute products

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Question # 116

Section A (1 Mark)

Psychologists have found that people who make decisions that turn out badly blame themselves more when that decision was unconventional. The name for this phenomenon is

Options:

A.

Regret avoidance

B.

Framing

C.

Mental accounting

D.

Overconfidence

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Question # 117

Section B (2 Mark)

Which of the following statements with respect to US Taxation Structure is/are correct?

Options:

A.

I and II

B.

III and IV

C.

I, II and IV

D.

II, III and IV

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Question # 118

Section B (2 Mark)

You are considering the purchase of a quadruplex apartment. Effective gross income (EGI) during the first year of operations is expected to be Rs33,600 (Rs700 per month per unit). First-year operating expenses are expected to be Rs. 13,440 (at 40 percent of EGI). Ignore capital expenditures. The purchase price of the quadruplex is Rs. 200,000. The acquisition will be financed with Rs60,000 in equity and a Rs. 140,000 standard fixed-rate mortgage. The interest rate on the debt financing is eight percent and the loan term is 30 years. Assume, for simplicity, that payments will be made annually and that there are no up-front financing costs.

What is the overall capitalization rate?

Options:

A.

9.47

B.

10.56

C.

10.08

D.

12.5

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Question # 119

Section A (1 Mark)

Current ratio is

Options:

A.

Current Cash / Current liabilities

B.

Current Assets / Current liabilities

C.

Current Liabilities / Current assets

D.

None of the above

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Question # 120

Section C (4 Mark)

A Portfolio manager is holding the following portfolio:

The risk free rate of return is 6% and the portfolio’s required rate of return is 12.5%. The manager would like to sell all of his holdings in stock A and use the proceeds to purchase more shares of stock D. What would be the portfolio’s required rate of return following this change?

Options:

A.

13.63%

B.

10.29%

C.

11.05%

D.

12.52%

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Question # 121

Section A (1 Mark)

The quantum of deduction allowed u/s 80U is:

Options:

A.

Rs. 40,000

B.

Rs. 50,000

C.

Rs. 60,000

D.

Rs 55000

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Question # 122

Section A (1 Mark)

The goal of the Dow theory is to

Options:

A.

Identify breakaway points

B.

Identify resistance levels.

C.

Identify support levels

D.

Identify long-term trends

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Question # 123

Section A (1 Mark)

Limited growth prospects are indicated by

Options:

A.

High dividend

B.

High P/E ratio

C.

Low dividend

D.

High dividend and low P/E ratio

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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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