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

Section A (1 Mark)

Wealth Conservation is _____________

Section C (4 Mark)

Which of the following would you consider the best indicator of an undervalued firm?

Section A (1 Mark)

Mr. Kashyap took a business premise on lease with the provision that he himself had to pay the insurance premium for fire and other perils on the premises and not the owner of the premises. This would be an instance of_______________ on the part of owner of the premises.

Section C (4 Mark)

Mr. Shyam has a portfolio consisting of two stocks A & B. Stock A has a standard deviation of 5 % while stock B has a standard deviation of 15%. Stock A comprises 40% of the portfolio and Stock B consists of 60%. If the correlation of returns of A & B is .5, the variance of return on the portfolio is _________.

Section B (2 Mark)

Amount of liability of payment of gratuity is calculated at the rate of

Section B (2 Mark)

Mr. Patel expects the stock of A to sell for Rs. 70/- a year from now and to pay Rs. 4/- dividend. If the stock's correlation with the Market is --0.3, and the standard deviation of A is 40% and standard deviation of the Market is 20% and the risk free rate of return is 5% and the market risk premium is 5%, what would be the price of stock A be now ?

Section A (1 Mark)

____________ is defined as a dollar per thousand dollars of assessed value of property and is used to calculate a property owner's tax bill.