AAFM GLO_CWM_LVL_1 Exam Practice Test Instant Access

Question 1

You have Rs.500,000 available to invest. The risk-free rate as well as your borrowing rate is 8%. The return on the risky portfolio is 16%. If you wish to earn a 22% return, you should __________.

AInvest Rs.125,000 in the risk-free asset

BInvest Rs.375,000 in the risk-free asset

CBorrow Rs.125,000

DBorrow Rs.375,000

Answer : D

Question 2

Initial issue expense in respect of the scheme should not exceed ______ of the funds raised during that scheme

A3%

B5%

C6%

D9%

Answer : C

Question 3

Which one of the following is/are correct?

A(i) only

B(iii) only

C(i), (ii), (iii)

DNone is correct

Answer : B

Question 4

In case of public company memo must be signed by atleast ....... persons.

AOne

BTwo

CSeven

DTen

Answer : C

Question 5

In a Mutual Fund Structure as per the latest guidelines the fund sponsor has to contribute:

AAt least 30% of the AMC's net worth at conforms to SEBI guidelines

BAt least 35% of the AMC's net worth at conforms to SEBI guidelines

CAt least 40% of the AMC's net worth at conforms to SEBI guidelines

DExactly 50% of the net worth of AMC

Answer : B

Question 6

If a preferred stock pays an annual Rs. 4.50 dividend, what should be the price of the stock if comparable yields are 10 percent? What would be the loss if yields rose to 12 percent?

ARs. 450/- loss Rs. 75

BRs. 45/- loss Rs. 7.50

CRs. 45/- loss Rs. 4.50

DRs. 450/- loss Rs. 6.25

Answer : B

Question 7

Pure premium is Rs. 5000. Expenses are 20% of the gross (office) premium. Office premium is

A6250

B6000

C4167

D4000

Answer : A

AAFM Chartered Wealth Manager (CWM) Global Examination GLO_CWM_LVL_1 Exam Practice Test