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Chartered Wealth Manager (CWM) Global Examination

Last Update 23 hours ago Total Questions : 1057

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Question # 41

Pankaj is an employee of a private company in Jabalpur. He draws an amount of Rs 36,000pm as basic salary. He also receives Rs 8000 as HRA. He has taken a house on rent from 1st October and pays Rs 10,000pm as rent for his house accomodation. What would be the taxable HRA?

A.

Rs. 96,000

B.

Rs 19,200

C.

Rs 76,800

D.

Rs 57,600

Question # 42

Calculate expected rate of return on the following portfolio?

Weight of X and Y in the portfolio is 50% and 50% respectively.

A.

19.25%

B.

15.35%

C.

16.40%

D.

17.85%

Question # 43

Calculate the total return on the mutual fund investment with the below mentioned information:

A.

24.52%

B.

22.47%

C.

23.52%

D.

23.75%

Question # 44

Which of the following statement is true?

A.

The two key financial intermediaries is to convert money market and capital market

B.

Money market is a market for short-term funds having maturity of one year or less

C.

The capital market consists of new issue markets and the stock exchange

D.

All of the above

Question # 45

Criminals use ______ to camouflage money flow from criminal activities and pass it off as regular legal money flows.

A.

Money Laundering

B.

Smuggling

C.

Drug Trafficking

D.

Pay Pal

Question # 46

What is Market Risk Premium?

A.

It is premium available in the market.

B.

It is the market risk measured by premium paid

C.

It is the difference between the average return on the portfolio and average risk free rate.

D.

Any of these

Question # 47

“Early accumulation” life stage is normally during ______

A.

12- 19 years

B.

Our 20s

C.

30-40

D.

Retirement years

Question # 48

If everyone is forced to pay an extra Rs 1000 in taxes each year, " the " multiplier

A.

Is unchanged and income falls

B.

Becomes smaller and income falls

C.

Becomes larger and income falls

D.

becomes larger and income rises

Question # 49

A mortgage where the mortgagor delivers possession and binds himself to deliver possession of the mortgaged property to the mortgagee is called?

A.

English Mortgage

B.

Reverse Mortgage

C.

Usufructuary Mortgage

D.

Mortgage by conditional sale

Question # 50

What is the minimum paid up capital needed to form a public limited company?

A.

No Minimum requirement

B.

Rs. 100000

C.

Rs. 500000

D.

Rs. 1000000

Question # 51

Wills which are not valid in India except in case of privileged wills or in case of Mahomadans are called as:

A.

Mutual wills

B.

Concurrent wills

C.

Nuncupative wills

D.

Holograph wills

Question # 52

" A borrower defaults on a secured loan of Rs. 50,000. The underlying security is worth Rs. 60,000. Which of the following is true? "

A.

" Bank can retain Rs. 50,000. Balance Rs. 10,000 has to be paid to the borrower. "

B.

Bank cannot sell the underlying security because its value is higher than loan.

C.

" Bank can retain the entire Rs. 60,000 "

D.

" The excess of Rs. 10,000 has to be shared equally between the bank and the borrower. "

Question # 53

A portfolio consists of 50% of investment ‘X’ that earned 15%, 25% of investment ‘Y’ that earned 8% and 25% of investment ‘Z’ that earned 11%. Compute the weighted average return?

A.

13.75%

B.

14.25%

C.

14.50%

D.

14.75%

Question # 54

G-Secs and corporate securities are variants of

A.

Debt Market

B.

Equity Market

C.

Currency Market

D.

Commodity Market

Question # 55

A UHNW segment client has investible assets worth of

A.

$20,000,000

B.

$50,000,000

C.

$75,000,000

D.

$100,000,000

Question # 56

When cash flows occur at the beginning of each period, it is called as ___________

A.

Annuity in arrear

B.

Annuity due

C.

Ordinary annuity

D.

None of the above

Question # 57

The holding period return on a stock was 30%. Its ending price was Rs.26 and its cash dividend was Rs.1.50. Its beginning price must have been __________.

A.

Rs.20.00

B.

Rs.21.15

C.

Rs.86.67

D.

Rs. 91.67

Question # 58

Ramesh has invested Rs. 70,000, 30% of which is invested in Company A, which has an expected rate of return of 15%, and 70% of which is invested in Company B, with an expected return of 12%. What is the expected percentage rate of return?

A.

Rs. 13.87%

B.

Rs. 12.90%

C.

Rs. 13.40%

D.

Rs. 13.17%

Question # 59

Portfolio A had a return of 12% in the previous year, while the market had an average return of 10%. The standard deviation of the portfolio was calculated to be 20%, while the standard deviation of the market was 15% over the same time period. If the correlation between the portfolio and the market is 0.8, what is the Beta of the portfolio A?

A.

0.94

B.

1.07

C.

1.31

D.

1.91

Question # 60

" A borrower who has been given notice of enforcement of security interest, replies with his objections.

What is expected of the secured creditor?

A.

Consider the objections fairly

B.

" If objections not acceptable, convey to borrower within 7 days "

C.

Both of the above

D.

None of the above

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