AAFM CWM_LEVEL_2 Practice Verified Answers - Pass Your Exams For Sure! [2021]
Valid Way To Pass AAFM Certification's CWM_LEVEL_2 Exam
NEW QUESTION 451
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?
- A. Her brother can invest in American company but purchasing under ESOP he must be employed in America.
- B. Her brother can purchase shares of foreign companies listed abroad under ESOP without any kind of restriction and he can send remittance without any limit.
- C. Her brother cannot invest in American shares as he is working its office situated in India.
- D. Her brother can invest in American ESOP by taking prior approval from the RBI for this.
Answer: B
NEW QUESTION 452
Section A (1 Mark)
The____________________ in commercial real estate requires that the tenant pay a significant share of expenses of operation, as well as all taxes and insurance related to their rental unit.
- A. The Gross Lease
- B. None of the Above
- C. Triple net lease
- D. The Modified Net Lease
Answer: C
NEW QUESTION 453
Section C (4 Mark)
Mr. Rajesh Rawat deposits Rs. 15,000 per month at the end of the month for 6.50 years in an account that pays a ROI of 8.80% per annum compounded quarterly. What will be the amount in the account after 6.50 years?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: B
NEW QUESTION 454
Section C (4 Mark)
Dyder System is a full-service truck leasing, maintenance, and rental firm. The following are selected numbers from the financial statements for 1992 and 1993 (in millions).
The firm had capital expenditures of Rs800 million in 1992 and Rs850 million in 1993. The working capital in
1991 was Rs34.8 million, and the total debt outstanding in 1991 was Rs1.75 billion. There were 77 million shares outstanding, trading at Rs29 per share.
Estimate the cash flows to the firm in 1992 and 1993(in Rs Millions)
- A. (139.75) and 534.34
- B. 139.75 and (349.95)
- C. (139.75) and 349.95
- D. -84.20 and 251
Answer: C
NEW QUESTION 455
Section A (1 Mark)
Conventional theories presume that investors ____________ and behavioral finance presumes that they
____________.
- A. Are irrational; are irrational"
- B. May not be rational; may not be rational
- C. May not be rational; are rational"
- D. Are rational; may not be rational"
Answer: D
NEW QUESTION 456
Section C (4 Mark)
Read the senario and answer to the question.
What would be the taxable amount on gratuity received by Jogen, if he would retired from an organization where employees are not covered under Gratuity Act?
- A. Rs. Nil
- B. Rs. 3,50,000
- C. Rs. 75,000
- D. Rs. 69,300
Answer: C
NEW QUESTION 457
Section C (4 Mark)
Read the senario and answer to the question.
Jogen commuted his 40% of pension in April, 2008 with Rs. 2,15,000.What would be the taxable amount on commuted pension received by Jogen, if he would retire from a private organization?
- A. Rs. 1,70,167
- B. Rs. Nil
- C. Rs. 1,07,500
- D. Rs. 35,833
Answer: D
NEW QUESTION 458
Section A (1 Mark)
Which one of the following has not caused the huge growth in hedge funds and private equity?
- A. Financial institutions looking for a better rate of return
- B. Private investors seeking better returns
- C. Tough financial regulations which promote greater investment and therefore better returns
- D. The freedom of hedge fund managers to use innovative methods of investing to increase returns
Answer: C
NEW QUESTION 459
Section A (1 Mark)
The assessed is charged to income-tax in the assessment year following the previous year:
- A. A non-resident business firm which shipped goods on 1.5.210 at Visakhapatnam Port in Andhra Pradesh
- B. An employee-assessed of a University who worked during 1.4.09 to 30.03.2010
- C. An employee left India to USA on 1.8.2010 with no intention of returning
- D. ABC firm which discontinued its business on 1.9.2010
Answer: B
NEW QUESTION 460
Section B (2 Mark)
Calculate the Information Ratio from the following data:
- A. 0.38
- B. 0.67
- C. 0.41
- D. 0.76
Answer: A
NEW QUESTION 461
Section C (4 Mark)
What amount needs to be deposited today in an account that would pay Rs. 1,10,000 per year for the first 10 years and Rs. 2,25,000 for the next 5 years. If the ROI for the first 10 years if 10.75 % p.a. compounded annually and 13% p.a. compounded quarterly for the balance period?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: D
NEW QUESTION 462
Section A (1 Mark)
A cognitive heuristic in which a decision-maker relies upon knowledge that is readily available rather than examining other alternatives or procedures. Which of the following is most likely consistent with this bias?
- A. Confirmation bias
- B. Anchoring and Adjustment Bias
- C. Overconfidence Bias
- D. Availability Bias
Answer: D
NEW QUESTION 463
Section A (1 Mark)
"Accumulation" is the age between ________
- A. 25-55
- B. 55-75
- C. 75 or above
- D. 0-25
Answer: A
NEW QUESTION 464
Section A (1 Mark)
Minimum number of employees in an establishment for it to come under the purview of the Payment of Gratuity act is ______
- A. 10 and above
- B. Above 20
- C. 20 and above
- D. Above 10
Answer: A
NEW QUESTION 465
Section C (4 Mark)
Read the senario and answer to the question.
Vinay wants to have 80% of the desired retirement corpus from his monthly savings from now itself. If he expects to earn 12% p.a. on these savings, how much amount should the couple save at the end of each month to achieve this target?
- A. Rs. 17873
- B. Rs. 26422
- C. None of the above
- D. Rs. 36548
Answer: A
NEW QUESTION 466
Section B (2 Mark)
Withholding Tax Rates for payments made to Non-Residents are determined by the Finance Act passed by the Parliament for various years. The current rates for Technical Services are:
- A. 0
- B. 1
- C. 2
- D. 3
Answer: D
NEW QUESTION 467
Section A (1 Mark)
Passive Preserver follows a ___________ Investment Style
- A. Risk Averse
- B. Aggressive
- C. Conservative
- D. Moderate
Answer: C
Explanation:
Section C (4 Mark)
Mr. Mahesh Chabaria, aged 52 years, currently owns an transport firm. His family consists of his wife Nitika, also aged 52 years, son Manish aged 29 and daughter Nidhi aged 27. Nitika is a housewife and both the children are happily married and well settled. The couple anticipates their life expectancy to be 80 years each.
Income and Expenses:
The gross annual income of Mahesh for the previous year 2007-08 is expected to be Rs. 1000000. The couples' household expenses are estimated to be Rs. 32000 per month. Taking into account incidental expenses of another Rs. 5000 the net expenses of the family are estimated to be Rs. 37000 per month for the previous year 2007-08. Mahesh has a net saving of Rs. 1800000 which he would like to invest for his post retirement purposes.
Assets Allocation:
Mahesh has hardly 8 years left for retirement and thus he is not very aggressive in his investments. Returns of his portfolio based on asset allocation during the accumulation and distribution phase are calculated as below:
NEW QUESTION 468
Section C (4 Mark)
Azhar deposits Rs. 12,500 in an account that pays a ROI of 20% p.a compounded annually on 5th. Of March
2010. Calculate the date on which the balance in his account would be Rs.35,338/-
- A. 25th November 2015
- B. 15th August 2015
- C. 15thNovember 2015
- D. 15th August 2016
Answer: C
NEW QUESTION 469
Section A (1 Mark)
Which of the following statements least accurately describes a form of risk associated with investing in fixed income securities?
- A. None of the Above
- B. Credit risk has only two components, default risk and downgrade risk.
- C. Bonds that are callable, prepayable, or amortizing have more reinvestment risk than otherwise equivalent bonds without these features
- D. Other things equal, a bond is more valuable to an investor when it has less liquidity risk.
Answer: B
NEW QUESTION 470
Section B (2 Mark)
Number One Flight Stock currently sells for Rs53. A one-year call option with strike price of Rs58 sells for Rs10, and the risk free interest rate is 5.5%. What is the price of a one-year put with strike price of Rs58?
- A. Rs. 11.97
- B. Rs. 16.00
- C. Rs. 12.12
- D. Rs. 10.00
Answer: A
NEW QUESTION 471
Section C (4 Mark)
Mudra Financial is a large financial firm which owns several mutual funds. The funds are managed individually by portfolio managers but it has an investment committee that overseas all of the funds. This committee is responsible for evaluating the performance of the funds relative to the appropriate benchmark and relative to stated investment objectives of each individual fund. During a recent investment committee meeting, the poor performance of Its Equity Funds were discussed. In particular, the inability of the portfolio managers to outperform their benchmarks was highlighted. The net conclusion of the committee was to review the performance of the manager responsible for each fund and dismiss those managers whose performance had lagged substantially behind the appropriate benchmark.
The fund with the worst relative performance is the Mudra Large Cap Fund which invests in large cap stocks.
A review of the operations of the fund found the following:
* The turnover of the fund was almost double that of other similar style mutual funds
* The fund's portfolio manager solicited input from her entire staff prior to making any decision to sell an existing holding
* The beta of the Mudra Large Cap Fund's portfolio was 65% higher than the beta of other similar style mutual funds
* The portfolio manager refuses to increase the Capital Goods sector weighting because of past losses the fund incurred in the sector
* The portfolio manager sold all the fund's Oil Marketing Companies stocks as the price per barrel of oil rose above $105. He expects oil prices to fall back to the $80 to $85 per barrel
* No stock is considered for purchase in the Large Cap Fund unless the portfolio manager has 10 years of financial information on that company.
The underweighting of the Capital Goods sector and selling off Oil Marketing Stocks could be best described as an example of:
- A. Loss Aversion and Representativeness respectively
- B. Regret Minimization and Gambler Fallacy respectively
- C. Anchoring & Adjustment and Money Illusion respectively
- D. Conservatism and Regret Minimization respectively
Answer: B
NEW QUESTION 472
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AAFM CWM_LEVEL_2 Pre-Exam Practice Tests | DumpsMaterials: https://www.dumpsmaterials.com/CWM_LEVEL_2-real-torrent.html
