Free AAFM CWM_LEVEL_2 Practice Exam with Questions & Answers | Set: 6

Section A (1 Mark)

In hedge funds the risk of no standard platform for measurement and no standard format for reporting is called __________________

Section C (4 Mark)

A trader buys three-month put options on 1 unit of gold with a strike of Rs.17000/10 gms at a premium of Rs.70. Unit of trading is 1kg. On the day of expiration, the spot price of gold is Rs.16800/10 gms. What is his net payoff?

Section B (2 Mark)

You write one XYZ February 50 put for a premium of Rs5. Ignoring transactions costs, what is the breakeven price of this position?

Section C (4 Mark)

Which of the following statements is/are correct?

Section B (2 Mark)

Which of the following statements is/ are correct?

Section C (4 Mark)

Read the senario and answer to the question.

Nimita had invested Rs. 3 lakh on 2nd May 2004 in an Equity MF when the NAV was Rs. 12.58 per unit she opted for divided payout option and received dividends paid by the scheme at 12% each on 18th Aug 2004, 20th Nov 2005, 15th Apr 2007 and on 16th Jun 2008, the dividend cum NAV per unit was Rs. 12.95, Rs. 13.05, Rs. 13.99, and Rs. 14.68 and the latest NAV of the fund is Rs. 16.68 per unit. Nimita wants to know the rate of return she got on this investment. The same is ________. (Please ignore charges and taxes if applicable)

Section B (2 Mark)

Which of the following statements with respect to US Taxation Structure is/are correct?

Section A (1 Mark)

The subscription paid into PPF account enjoys the tax benefit under

Section A (1 Mark)

Which of the following can be the underlying for a commodity derivative contract?

Section A (1 Mark)

Which of the following is/are the challenges of Private Banking?

Section C (4 Mark)

Read the senario and answer to the question.

Raman is considering the purchase of a office building and, as part of his analysis, from the following given data calculate the appraised value of the property using the Income Approach?

Section B (2 Mark)

Gold trades at Rs.16000 per 10 gms in the spot market. Three-month gold futures trade at Rs.16150. One unit of trading is 1kg and the delivery unit for the gold futures contract on the NCDEX is 1 kg. A speculator who expects gold prices to rise in the near future buys 1 unit of gold futures. Two months later gold futures trade at Rs.15900 per 10 gms. He makes a profit/loss of ______________.

Section A (1 Mark)

The best way to maintain your credit rating is to:

Section B (2 Mark)

A stock with a Beta of 0.7 currently priced at Rs 50 is expected to increase in price to Rs 55 by year end and pay Rs 1 as dividend. The expected market return is 15% and the risk free rate is 8%. The stock is:

Section B (2 Mark)

If two customers choose exactly the same package of certain service, but customer A calls for help weekly and customer B calls only twice a year, which is most valuable customer?

Section B (2 Mark)

The ________________provides that where the total income of an enterprise is computed by the AO on the basis of the arm's length price as computed by him, the income of the other associated enterprise shall not be recomputed by reason of such determination of arm's length price in the case of the first mentioned enterprise, where the tax has been deducted or such tax was deductible, even if not actually deducted under the provision of chapter VIIB on the amount paid by the first enterprise to the other associate enterprise.

Section A (1 Mark)

A(n)______________________ loan is a short- or medium-term loan repayable in two or more consecutive payments, usually monthly or quarterly.

Section C (4 Mark)

Vikas has an investment portfolio of Rs.100000, and a multiplier of 2. The initial portfolio mix is Rs. 50000 in stocks and Rs. 50000 in bonds. If stock market goes up by 20%, what should Vikas do under the constant mix policy?

Section B (2 Mark)

The arbitrage pricing theory (APT) and the CAPM both assume all except which of the following?

Section A (1 Mark)

The strategies of convertible arbitrage, emerging markets, equity market neutral and fixed income arbitrage are categories of which alternative investments class?

Section B (2 Mark)

What is the expected percentage price change for a bond with an effective duration of nine in response to an increase in yield of 30 basis points?

Section C (4 Mark)

Which of the following statements is/are correct?

Section A (1 Mark)

An arbitrage opportunity exists if an investor can construct a __________ investment portfolio that will yield a sure profit.

Section B (2 Mark)

To maximize this benefit a bank must:

Section B (2 Mark)

If a stock GHI ltd pays an annual dividend of Rs. 5 and plans to follow this policy for ever, then what would be the ate of return that investor would realize given the current market price of stock is 100?

Section A (1 Mark)

For claiming exemption u/s 54G, the assessed shall acquire the new asset within:

Section A (1 Mark)

Teena Dutta wants to buy a used car and wants a loan that she will pay off over the next three years with monthly payments. What type of loan does Teena want?

Section B (2 Mark)

Which of the following statements is correct?

Section A (1 Mark)

Which of the following is NOT one of the phases of the life-cycle theory of asset allocation?

Section A (1 Mark)

Which of the following are the advantages of a Credit Union:

Section B (2 Mark)

Portfolio A has expected return of 10% and standard deviation of 19%. Portfolio B has expected return of 12% and standard deviation of 17%. Rational investors will

Section B (2 Mark)

Hybrid plans are

Section B (2 Mark)

In 2011-12, Steven has business profits of £34,125, net bank interest of £1,240 and net dividends of £9,000. He claims the personal allowance of £7,475. What is the income tax payable for the year after subtracting tax deducted at source?

Section B (2 Mark)

An investor is considering the purchase of a small office building and, as part of his analysis, form the following given data calculate the Net Operating Income (NOI).

Section B (2 Mark)

Consider a one-year maturity call option and a one-year put option on the same stock, both with striking price Rs45. If the risk-free rate is 4%, the stock price is Rs48, and the put sells for Rs1.50, what should be the price of the call?

Section A (1 Mark)

In ________, the values exchanged by the contracting parties may not necessarily be equal

Section A (1 Mark)

Mr. Sharma invested Rs. 2,00,000 in an investment that gives Rs 40,000/- for the first 4 years, and Rs. 60,000/- for next 3 years. If the discount rate is 12 %, calculate the Present Value of these cash flows?

Section C (4 Mark)

Rate of 15% p.a compounded annually will be equal to ---------------- % per month.

Section A (1 Mark)

In a short call, profit is

Section A (1 Mark)

_________________ is the most important source of revenue for states in US.

Section C (4 Mark)

Yogesh Jain is a Chartered Accountant by profession and a very disciplined investor he has started investing from today in an account Rs. 1,00,000 every year (beginning of year) and plans to increase his contribution by 10% every year. If the ROI he gets is 15% per annum compounded half yearly calculate the corpus he would be able to accumulate in 25 years.

Section A (1 Mark)

Which of the following statements least accurately describes a form of risk associated with investing in fixed income securities?

Section C (4 Mark)

Which of the following statements are correct?

Section A (1 Mark)

Manish is thinking of acquiring some shares of ABC Ltd. The rate of returns is as follows:

Calculate the expected return on the investments

Section A (1 Mark)

Wealth Enhancement is _____________

Section A (1 Mark)

In US which of the following does not count as an itemized deduction on income tax?

Section B (2 Mark)

Ms. Shalini Bhargav plans to purchase a property having a projected annual income for three year is Rs 20,000 with 12 percent expected return and expect to sell it at the end of three years for Rs 2,70,000. Compute the present value of the property.

Section A (1 Mark)

What are the common methods an investors may use to value real estate investments?

Section B (2 Mark)

You are estimating the value of a small office building. Suppose the estimated NOI for the first year of operations is Rs100,000. a. If you expect that NOI will remain constant at Rs100,000 over the next 50 years and that the office building will have no value at the end of 50 years, what is the present value of the building assuming a 12.2% discount rate?

Section C (4 Mark)

Read the senario and answer to the question.

What is the Basic Liquidity Ratio for the couple? Is it sufficient considering Vinay’s circumstances?