AAFM CWM_LEVEL_2 Exam Questions Instant Access

Question 1

Section B (2 Mark)

Rahul decides to deposit Rs. 5,000/- every month into an account yielding 12 % per annum compounded monthly for 20 years. What will be the accumulated value in this account after 20 years and how much amount can be withdrawn from this account every month for a further period of 20 years of ROI is 8 % per annum compounded monthly?

A41384.95

B4946276

C594523

D40230.85

Answer : A

Question 2

Section A (1 Mark)

Which of the following is allowed as deduction from net annual value of a property?

ARepairs & collection charges

BInsurance premium

CInterest on loan borrowed for repairs

DAll the above

Answer : C

Question 3

Section B (2 Mark)

Which of the following statements is / are correct?

AOnly I and II

BII, III and IV

CI, II and III

DAll of the above

Answer : B

Question 4

Section A (1 Mark)

A European call option allows the buyer to

ASell the underlying asset at the exercise price on the expiration date.

BSell the option in the open market prior to expiration.

CBuy the underlying asset at the exercise price on the expiration date.

DC and D.

Answer : D

Question 5

Section A (1 Mark)

Financial Gerontology tries to assess client needs based on __________

ADemographics of middle aged children and their elderly parents

BInterconnections of financial legal and ethical issues

COptions for financing health and long term care

DAll of the above

Answer : D

Question 6

Section C (4 Mark)

Vinod has a investment portfolio of Rs. 100000, a floor of Rs. 75000, and a multiplier of 2. So the initial portfolio mix is 50000 in stocks and 50000 in bonds. If stock market falls by 20%, what should Vinod do assuming he is following a CPPI policy?

AHe should sell stocks and bonds equally

BHe should sell Rs.10000 of bonds and invest it into stocks

CHe should sell Rs.10000 of stocks and invest it into bonds

DHe should buy Rs.20000 of stocks to average

Answer : C

Question 7

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?

AHer brother cannot invest in American shares as he is working its office situated in India.

BHer brother can invest in American company but purchasing under ESOP he must be employed in America.

CHer brother can invest in American ESOP by taking prior approval from the RBI for this.

DHer brother can purchase shares of foreign companies listed abroad under ESOP without any kind of restriction and he can send remittance without any limit.

Answer : D

AAFM Chartered Wealth Manager (CWM) Certification Level II Examination CWM_LEVEL_2 Exam Questions