Free AAFM GLO_CWM_LVL_1 Practice Exam with Questions & Answers

Dharampal has let out his house property at monthly rate of Rs. 12000. He has paid Rs.3500 as annual municipal tax. He wants to know the Net Annual value of his house at Bhuj for AY 2011-12. The Municipal value of the house is Rs. 90,000, Fair rent Rs. 1,40,000, Standard rent Rs. 1,20,000. The house was vacant for one month during the previous year 2010-11 and the rent has not changed since then.

Rahul had invested in an open ended Mutual Fund when the NAV of the fund was Rs. 10. After 6 months the NAV was Rs. 12. Calculate the annualized percentage change in the fund ignoring all charges.

Girish is 25 years old and plans to retire at 60. His life expectancy is 75 years. Mr. Binoy his CWM® estimates that his client will require Rs. 45,000 in the first month after retirement. Inflation rate is 5% p.a. and the rate of return is 7% p.a. How much she should save every year in order to achieve her post retirement needs?

The coverage under a Product Liability policy includes:

Suppose there is Portfolio “P” available for investment in the market which has a correlation with the market of 0.70.

What portion of the risk of the portfolio can be eliminated through diversification?

If a Rs. 100 par value preferred stock pays an annual dividend of Rs. 5 and comparable yields are 10 percent, the price of this preferred stock will be

Balance on current account + balance of capital account + balance on reserves account is equal to ___________

If you have deposited Rs.4000 with a company and the company wishes to prepay the deposit at the contracted rate of interest after a period of 3.5 years and offers you Rs.4985, what is the effective rate of interest if it is accounted half yearly?

Which of the following statement is true in relation to life expectancy?

You bought a stock for Rs. 20 and sold it for Rs. 59.72 after six years. What was the annual rate of return?

“Annuity certain” is

Mr Ram aged 53 years has put in 21 years of service in a PSU opts for a voluntary retirement under the company scheme. He has 5 years and 3 months of service left and his last drawn salary is Rs 18,000. He received Rs 10,00,000 as compensation. What would be the taxable part of this receipt?

Which of the following is true with regard to wealth planner’s liability?

You are given the following set of data:

Historical Rate of Return

Determine the arithmetic average rates of return and standard deviation of returns of the NSE over the period given.

Lokesh purchased a flat on 1-4-1996 for Rs. 10,00,000/-. He sells the same flat on 1-10-2006 for Rs. 25,00,000/-.As a CWM® calculate the Indexed Cost of Acquisition on which capital gain would be calculated. (The CII of year 1995-96 is 281, for year 1996-97 is 305, for year 2005-06 is 497 and for year 2006-07 is 519).

Given the following data, which one of the options will be monthly premium installment?

Rebate for large sum assured

Upto Rs. 24,999/- No rebate

From Rs. 25,000/- to 49,999/- @ Re 1 per thousand SA

From Rs. 50,000 and above @ Rs. 2 per thousand SA

Dinesh has opened his PPF account on 19/11/1999, Calculate the amount he can avail as the first withdrawal facility from the details below?

A weaker Rupee benefits _____ and hurts _____

Dinesh is entitled to a basic salary of Rs. 5,000 p.m. and dearness allowance of “Rs. 1,000 per month, 40% of which forms the part of the retirement benefits. He is also entitled to HRA of Rs. 2,000 p.m. He actually pays Rs. 2,000 p.m. as rent for a house in Delhi. Compute the taxable HRA

Which of the following is/are the desirable contents of a will?