AAFM Chartered Wealth Manager (CWM) Certification Level II Examination - CWM_LEVEL_2 Exam Questions
QUESTION NO: 1
Section B (2 Mark)
Which of the following is/are incorrect with respect to Draft guidelines of REITs in India?
Section B (2 Mark)
Which of the following is/are incorrect with respect to Draft guidelines of REITs in India?
Correct Answer: C
QUESTION NO: 2
Section A (1 Mark)
A bank is considering making a loan to Neelam Pandey. The bank is looking at her credit report from Equifax and also examining the reason Neelam has put on the loan application for needing the loan? What aspect of evaluating a consumer loan application is the bank looking at?
Section A (1 Mark)
A bank is considering making a loan to Neelam Pandey. The bank is looking at her credit report from Equifax and also examining the reason Neelam has put on the loan application for needing the loan? What aspect of evaluating a consumer loan application is the bank looking at?
Correct Answer: D
QUESTION NO: 3
Section A (1 Mark)
_____________ is defined as the transfer of services to private enterprise in US.
Section A (1 Mark)
_____________ is defined as the transfer of services to private enterprise in US.
Correct Answer: B
QUESTION NO: 4
Section C (4 Mark)
You are considering adding a new product to your firm's existing product line. It should cause a 15 percent increase in your profit margin (i.e., new PM = old PM x 1.15), but it will also require a 50 percent increase in total assets (i.e., new TA = old TA x 1.5). You expect to finance this asset growth entirely by debt. If the following ratios were computed before the change, what will be the new ROE if the new product is added and sales remain constant?
Section C (4 Mark)
You are considering adding a new product to your firm's existing product line. It should cause a 15 percent increase in your profit margin (i.e., new PM = old PM x 1.15), but it will also require a 50 percent increase in total assets (i.e., new TA = old TA x 1.5). You expect to finance this asset growth entirely by debt. If the following ratios were computed before the change, what will be the new ROE if the new product is added and sales remain constant?
Correct Answer: A
QUESTION NO: 5
Section B (2 Mark)
What is the monthly payment size of a 23-year mortgage for Rs165 600 and an interest rate of 5.25% compounded semi-annually?
Section B (2 Mark)
What is the monthly payment size of a 23-year mortgage for Rs165 600 and an interest rate of 5.25% compounded semi-annually?
Correct Answer: A
QUESTION NO: 6
Section A (1 Mark)
Adjusted gross income is used in establishing limits on the following deductions, with the exception of
Section A (1 Mark)
Adjusted gross income is used in establishing limits on the following deductions, with the exception of
Correct Answer: D
QUESTION NO: 7
Section A (1 Mark)
The most common type of interest rate swap is
Section A (1 Mark)
The most common type of interest rate swap is
Correct Answer: C
QUESTION NO: 8
Section C (4 Mark)
Mr. XYZ is bullish about ABC Ltd stock. He buys ABC Ltd. at current market price of Rs. 4000 on 4th July.
To protect against fall in the price of ABC Ltd. (his risk), he buys an ABC Ltd. Put option with a strike price Rs. 3900 (OTM) at a premium of Rs. 143.80 expiring on 31st July.
What would be the Net Payoff of the Strategy?
* If ABC Ltd closes at 3458
* If ABC Ltd closes at 4352
Section C (4 Mark)
Mr. XYZ is bullish about ABC Ltd stock. He buys ABC Ltd. at current market price of Rs. 4000 on 4th July.
To protect against fall in the price of ABC Ltd. (his risk), he buys an ABC Ltd. Put option with a strike price Rs. 3900 (OTM) at a premium of Rs. 143.80 expiring on 31st July.
What would be the Net Payoff of the Strategy?
* If ABC Ltd closes at 3458
* If ABC Ltd closes at 4352
Correct Answer: D
