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Chartered Wealth Manager (CWM) Global Examination

Last Update 19 hours ago Total Questions : 1057

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Question # 181

The difference between aggregate disbursements net of debt repayments and recovery of loans and revenue receipts and non debt capital receipts is called:

A.

Conventional Deficit

B.

Gross Fiscal Deficit

C.

Net Fiscal Deficit

D.

Primary Deficit

Question # 182

As a CWM® you recommended Mr. Raj Malhotra to put his money in Asset A offering 15% annual return with a standard deviation of 10%, and balance funds in asset B offering a 9% annual return with a standard deviation of 8%. Assume the coefficient of correlation between the returns on assets A and B is 0.50. Calculate the expected return after 1 year and standard deviation of Mr. Raj Malhotra’s portfolio

A.

12.60% and 0.809%

B.

11.67% and 8.75%

C.

12.60% and 8.09%

D.

8.09% and 12.60%

Question # 183

Sujoy has purchased shares of Rs.12500 of common stock in Hindustan Unilever . He has recently sold investment to the tune of Rs.15000 & received Rs 2500 as cash dividends during the holding period of 4 years. He paid a total of Rs 250 in commissions. What is CAGR on the investment?

A.

8.23%

B.

9.75%

C.

9.05%

D.

10.72%

Question # 184

You are considering investing Rs 1,500 at an interest rate of 5% compounded annually for 2 years or investing the Rs1,500 at 7% per year simple interest rate for 2 years. Which option is better?

A.

Simple Interest by Rs56.25

B.

Compound Interest by Rs114.05

C.

Compound Interest by Rs52.75

D.

Simple Interest by Rs75.19

Question # 185

Mr.Tiwari is the sole income earner in the family. Mrs. Tiwari is a homemaker. They are aged 40 and 36 respectively. Life expectancy for both of them is another 40 years. They have no children. Other information you have is:

Current investment portfolio Rs. 20 lakh, Estimated final expenses – Rs. 1 lakh, present annual expenses- Rs 4 lakhs (including 1 lakh MrTiwari’s personal expenses), Mr. Tiwari’s post tax income in hand is Rs 3.5 lakhs. Assume a post tax; and post inflation rate, the discounting factor is 4%. Calculate the insurance requirement under the Needs Based Method.

A.

16.60 lakhs

B.

18.60 lakhs

C.

19.60 lakhs

D.

43.00 lakhs

Question # 186

If, C=Rs.240 million, I = Rs.20 million, G = Rs.90 million, X = Rs.50 million M = Rs.80 million Calculate the value of GDP?

A.

Rs.280 million

B.

Rs.320 million

C.

Rs.300 million

D.

Rs.340 million

Question # 187

From the following information:

The Surrender value is 43% of the paid up value and loan is available at 85% of surrender value.

Calculate paid up value, surrender value, and loan value

A.

Rs. 98,250/-, Rs. 43,825/-, Rs. 35,636/-

B.

Rs. 96,750/-, Rs. 46,925/-, Rs. 39,886/-

C.

Rs. 98,000/-, Rs. 42,140/-, Rs. 35,819/-

D.

Rs. 95,000/-, Rs. 40,850/-, Rs. 34,723/-

Question # 188

You buy a new computer for your business costing approximately Rs. 5,000. You expect a salvage value of Rs. 1000 selling parts when you dispose of it. Your business has upgraded its hardware every four years, so you think this is a more realistic estimate of useful life, since you are apt to dispose of the computer at that time. Calculate the amount of depreciation using straight line method?

A.

1000

B.

2000

C.

1500

D.

3500

Question # 189

A Treasury bill pays a 6% rate of return. A risk averse investor __________ invest in a risky portfolio that pays 12% with a probability of 40% or 2% with a probability of 60% because __________.

A.

Might; she is rewarded a risk premium

B.

Would not; because she is not rewarded any risk premium

C.

Would not; because the risk premium is small

D.

Cannot be determined

Question # 190

What is the minimum paid up capital needed to form a Pvt. Company?

A.

No Minimum requirement

B.

Rs. 50000

C.

Rs. 100000

D.

Rs. 500000

Question # 191

In Islamic Banking, Anything permitted by Shariah is called:

A.

Israf

B.

Halal

C.

Haram

D.

Hibah

Question # 192

“Income rule” in Insurance advocates

A.

Cover of at least 8 - 10 times of one’s gross annual income

B.

Cover of at least 5- 6 times of one’s gross annual income

C.

Cover of at least 4-5 times of one’s gross annual income

D.

Cover of at least 10 - 12 times of one’s gross annual income

Question # 193

The Society Registration Act of 1860 come into effect on

A.

21st June 1960

B.

21st May 1860

C.

23rd May 1860

D.

19th May 1860

Question # 194

If the proposer does not disclose fully all the material facts at the time of Proposal the principle violated

A.

Caveat emptor

B.

Insurable interest

C.

Utmost good faith

D.

Sharing of risk

Question # 195

If the slope of the Security Market Line is zero, which of the following is/are true?

A.

Only (I) above

B.

Only (III) above

C.

Both (II) and (III) above

D.

All (I), (II) and (III) above.

Question # 196

Minimum number of members in case of private company is

A.

1

B.

2

C.

3

D.

5

Question # 197

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

A.

Rs. 40,000

B.

Rs. 50,000

C.

Rs. 60,000

D.

Rs 55000

Question # 198

A will that is not valid in India except in the case of privileged wills or in the case of Mahomedans

A.

Nuncupative Will

B.

Contingent Will

C.

Holograph Will

D.

Concurrent Will

Question # 199

Which is not the condition for getting superannuation fund approved?

A.

All the benefits should be payable only in India

B.

Employee should be contributor to the fund

C.

Employer should be contributor to fund

D.

Funds have to be invested as per income tax rules1962

Question # 200

Which of the following is not true?

A.

The prices of zero coupon bonds fluctuate less than bonds with large coupons.

B.

The concept of duration stresses when a bond will make its payments to bondholders.

C.

The smaller a bond ' s coupon implies a longer duration.

D.

A conservative investor will prefer a bond with a smaller duration even though it may have a longer term to maturity.

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