Pass Your AAFM Certification CWM_LEVEL_2 Exam Easily with Accurate PDF Questions [Jan 02, 2022]
CWM_LEVEL_2 Certification Exam Dumps Questions in here
NEW QUESTION 286
Section B (2 Mark)
What is the PV of an Annuity Due which provides Rs. 2,000/- per month for first 3 years and then Rs. 3,000/- per month for next 2 years. This annuity starts 4 years from now and ROI is 9 % per annum compounded monthly?
- A. 80704.76
- B. 81234.87
- C. 79453.34
- D. 66159.94
Answer: A
NEW QUESTION 287
Section A (1 Mark)
According to Michael Porter, there are five determinants of competition. An example of _____ is when new entrants to an industry our pressure on prices and profits.
- A. Pressure from Substitute Products
- B. Bargaining power of Buyers
- C. Rivalry between Existing Competitors
- D. Threat of Entry
Answer: D
NEW QUESTION 288
Section C (4 Mark)
Which of the following statements is/are correct?
- A. I and II
- B. I, II and III
- C. I and III
- D. III and IV
Answer: B
NEW QUESTION 289
Section B (2 Mark)
Mr. Patel expects the stock of A to sell for Rs. 70/- a year from now and to pay Rs. 4/- dividend. If the stock's correlation with the Market is -0.3, and the standard deviation of A is 40% and standard deviation of the Market is 20% and the risk free rate of return is 5% and the market risk premium is 5%, what would be the price of stock A be now ?
- A. 72.55
- B. 0
- C. 75.65
- D. 73.65
Answer: A
NEW QUESTION 290
Section A (1 Mark)
The premise of behavioral finance is that
- A. B and C
- B. Conventional financial theory ignores how real people make decisions and that people make a difference.
- C. Conventional financial theory should ignore how the average person makes decisions because the market is driven by investors that are much more sophisticated than the average person.
- D. Conventional financial theory considers how emotional people make decisions but the market is driven by rational utility maximizing investors.
Answer: B
NEW QUESTION 291
Section B (2 Mark)
Narayan expects to receive Rs 25000 in net receipts each year for five year and to sell the property for Rs
350,000 at the end of the five-year period, if Narayan expects a 15% return, what would be the value of the property?
- A. Rs. 2,60,000
- B. Rs. 2,70,386
- C. Rs. 2,57,818
- D. Rs. 3,25,000
Answer: C
NEW QUESTION 292
Section A (1 Mark)
The steps to establishing an investment policy are to state the
- A. Regulatory guidelines for prudent man investing.
- B. Asset allocation parameters and time horizons.
- C. Objectives and constraints and preferences.
- D. Minimum investment and maximum fees.
Answer: C
NEW QUESTION 293
Section B (2 Mark)
Manav wishes to calculate that if he wants to withdraw Rs. 2,000/- every Quarter at start of the month for 6 years, then how much amount is required to be in his account today. He wants to start this withdrawal immediately and ROI is 9 % per annum compounded quarterly.
- A. 44378.98
- B. 37605.57
- C. 36987.34
- D. 34598.98
Answer: B
NEW QUESTION 294
Section C (4 Mark)
Read the senario and answer to the question.
You have reviewed the investments of Nimita for the purview of retirement. You advise that a balance be restored from risk perspective and accordingly Rs. 15 lakh be shifted to a Debt MF scheme. You advise to further start SIPs immediately in the ratio of 60:40 in the newly started debt MF scheme and the existing Equity MF scheme for the next 21 years to accumulate a corpus so that the same sustains for the next 25 years if invested in an investment instrument yielding 7.50%. What approximate amount of SIPs should be made in Debt and Equity MF schemes?
- A. Rs. 55,400 in Debt MF scheme & Rs. 37,000 in Equity MF scheme
- B. Rs. 42,000 in Debt MF scheme & Rs. 28,000 in Equity MF scheme
- C. Rs. 60,000 in Debt MF scheme & Rs. 40,000 in Equity MF scheme
- D. Rs. 58,000 in Debt MF scheme & Rs. 39,000 in Equity MF scheme
Answer: C
NEW QUESTION 295
Section B (2 Mark)
A bank has a limited geographic area. It would like to diversify its loan income with loans in other market areas but does not want to actually make loans in those areas because of their limited experience in those areas. Which type of credit derivative contract would you most recommend for this situation?
- A. Credit swap
- B. Total return swap
- C. Credit risk option
- D. Credit linked note
Answer: A
NEW QUESTION 296
Section A (1 Mark)
Which of the following is NOT one of the phases of the life-cycle theory of asset allocation?
- A. Accumulation phase
- B. Consolidation phase
- C. Taxation phase
- D. Gifting phase
Answer: C
NEW QUESTION 297
Section B (2 Mark)
Fiscal policy generally has a _______ direct impact than monetary policy on the economy, and the formulation and implementation of fiscal policy is ______ than that of monetary policy.
- A. More, slower
- B. Less, quicker
- C. More, quicker
- D. Less, slower
Answer: A
NEW QUESTION 298
Section B (2 Mark)
If one earns 10% on investment but inflation is 2%, real rate of return is
- A. 7.70%
- B. 7.84%
- C. 10%
- D. 8%
Answer: B
NEW QUESTION 299
Section A (1 Mark)
Which of the following is not true in respect of CIBIL?
- A. Pulling up CIBIL report is mandatory for all loans.
- B. None of the above.
- C. Report is to be pulled up at the front end.
- D. Mandate for pulling up the report and sharing of information from customer is mandatory.
Answer: B
NEW QUESTION 300
Section B (2 Mark)
One unit of trading for Guar Seed futures is 10 MT and delivery unit is 10 MT. A trader sells 1 unit of Guar Seed at Rs.2500/Quintal on the futures market. A week later Guar Seed futures trade at Rs.2550/Quintal. How much profit/loss has he made on his position?
- A. (-)5000
- B. (-)50,000
- C. (+)50,000
- D. (+)5000
Answer: A
NEW QUESTION 301
Section C (4 Mark)
Pinnacle India Ltd, reported a net profit of Rs1.085 billion on sales of Rs7.425 billion in 1993. The sales/book value ratio in 1993 was approximately 1.2, and the dividend payout ratio was 20%. The book value per share was Rs19 in 1993. The firm is expected to maintain high growth for ten years, after which the growth is expected to drop to 6%, and the dividend payout ratio is expected to increase to 65%. The beta of the stock is
1.05. (The treasury bill rate is 7%.)
Estimate the price/sales ratio for the company.
- A. 44.93
- B. 45.5
- C. 42.57
- D. 35.15
Answer: A
NEW QUESTION 302
Section B (2 Mark)
To pay for new equipment with a cash price of Rs7500, you need to borrow at 5.3% compounded monthly, then make monthly payments for 32 months. How many fewer months would it take to pay back the loan if you had also saved Rs600 to pay at the end?
- A. 4.80 months
- B. 27.20 months
- C. 2.26 months
- D. 29.76 months
Answer: C
NEW QUESTION 303
Section A (1 Mark)
If a portfolio manager consistently obtains a high Sharpe measure, the manager's forecasting ability
__________.
- A. is below average
- B. None of the Above
- C. is above average
- D. is average
Answer: C
NEW QUESTION 304
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