Reliable AAFM Certification CWM_LEVEL_2 Dumps PDF Dec 30, 2021 Recently Updated Questions
Pass Your AAFM CWM_LEVEL_2 Exam with Correct 1234 Questions and Answers
NEW QUESTION 360
Section A (1 Mark)
__________refers to responding to a positive action with another positive action, rewarding kind actions.
- A. In Equity Reversion
- B. Reciprocity
- C. Money Illusion
- D. Escalation of Commitment
Answer: B
NEW QUESTION 361
Section C (4 Mark)
Read the senario and answer to the question.
The present household expenses of Mr Bhatia is Rs. 3,00,000 p.a. but if he were to retire today he would require only Rs. 2,25,000 p.a. Calculate his required retirement corpus if interest rate is 12% p.a. and inflation rate is 7%.
- A. Rs. 1,53,87,451
- B. Rs. 1,50,04,378
- C. Rs. 1,74,78,345
- D. Rs. 1,61,06,405
Answer: D
NEW QUESTION 362
Section B (2 Mark)
You may need to file your Returns in India under the following circumstances:
- A. II and III
- B. I, II and III
- C. III and IV
- D. All of the above
Answer: D
NEW QUESTION 363
Section C (4 Mark)
To fulfil the Educational Qualification to be registered as an Investment Advisor under the SEBI Investment Advisor Regulations 2013, The applicant must:
- A. All I, II, III and IV
- B. Both I and IV
- C. Either of I or II and Either of III or IV
- D. Both II and III
Answer: C
NEW QUESTION 364
Section A (1 Mark)
Which of the following income is not exempt under section 10-
- A. Income from mutual funds
- B. Income from agriculture in Lahore
- C. Share in total income of firm
- D. Bonus on life insurance
Answer: B
NEW QUESTION 365
Section A (1 Mark)
_________________makes us throw more good money after money already gone bad.
- A. Present-biased preferences
- B. Inter Temporal Consumption
- C. Sunk Cost Fallacy
- D. Money Illusion
Answer: C
NEW QUESTION 366
Section A (1 Mark)
Mr. Naresh is working in a reputed company and earning Rs. 5,00,000/- p.a. and is now 50 years old. He has invested Rs. 2,50,000/- in an annuity which will pay him after 5 years a certain amount p.a. at the end of every year for 10 years. Rate of interest is 8% p.a. Calculate how much he will receive at the end of every year after
5 years?
- A. 0
- B. 1
- C. 2
- D. 3
Answer: B
NEW QUESTION 367
Section B (2 Mark)
As per Article 11 double Taxation Avoidance Agreement with US Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.However, such interest may also be taxed in the Contracting State in which it arises, and according to the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed:
(a) ____per cent of the gross amount of the interest if such interest is paid on a loan granted by a bank carrying on a bona fide banking business or by a similar financial institution (including an insurance company); and (b) _____ per cent of the gross amount of the interest in all other cases.
- A. 20 and 15
- B. 12 and 15
- C. 15 and 20
- D. 10 and 15
Answer: D
NEW QUESTION 368
Section A (1 Mark)
An appealing feature of options on futures contracts is that:
- A. Margin calls occur less frequently.
- B. They have longer terms until expiration.
- C. The purchaser has limited liability.
- D. Losses virtually never occur.
Answer: C
NEW QUESTION 369
Section B (2 Mark)
To maximize this benefit a bank must:
- A. I, II and III
- B. All of the above
- C. I, III and IV
- D. II, III and IV
Answer: B
NEW QUESTION 370
Section B (2 Mark)
Conventional theories presume that investors ____________ and behavioral finance presumes that they
____________.
- A. are rational; are rational
- B. may not be rational; may not be rational
- C. are rational; may not be rational
- D. are irrational; are irrational
Answer: C
NEW QUESTION 371
Section C (4 Mark)
As a CWM you are required to calculate the tax liability of an individual whose Taxable income is:
* $ 1,22,300 in US dollars and he is a US citizen (Heads of the households)
* $ 310000 in SGD and he is a citizen of Singapore
- A. 25220 USD and 52700 SGD
- B. 27450.10 USD and 57780 SGD
- C. 24580.50 USD and 45200 SGD
- D. 24580 USD and 14870 SGD
Answer: A
NEW QUESTION 372
Section A (1 Mark)
General Insurance business was established in India in
- A. 0
- B. 1
- C. 2
- D. 3
Answer: C
NEW QUESTION 373
Section A (1 Mark)
The first step of portfolio management is:
- A. To adjust the portfolio as necessary.
- B. To assess market conditions.
- C. To develop strategies and implement them.
- D. To determine objectives, constraints and preferences.
Answer: D
NEW QUESTION 374
Section C (4 Mark)
Mr. Shyam has a portfolio consisting of two stocks A & B. Stock A has a standard deviation of 5 % while stock B has a standard deviation of 15%. Stock A comprises 40% of the portfolio and Stock B consists of
60%. If the correlation of returns of A & B is .5, the variance of return on the portfolio is _________.
- A. 0.0094
- B. -0.0085
- C. -0.0035
- D. 0.0103
Answer: D
NEW QUESTION 375
Section A (1 Mark)
A muslim gentleman can leave his will, bequeathing all his properties to someone often than his legal heirs to the extent of................
- A. A small portion
- B. His wish
- C. One third
- D. One half
Answer: C
NEW QUESTION 376
Section C (4 Mark)
A stock ABC Ltd. is trading at Rs. 450. Mr. XYZ is bullish on the stock. But does not want to invest Rs. 450.
He does a Long Combo. He sells a Put option with a strike price Rs. 400 at a premium of Rs. 1.00 and buys a Call Option with a strike price of Rs. 500 at a premium of Rs. 2.
What would be the Net Payoff of the Strategy?
* If ABC Ltd closes at 625
* If ABC Ltd closes at 328
- A. -114 and 95
- B. 124 and -73
- C. -144 and 105
- D. 320 and 270
Answer: B
NEW QUESTION 377
Section C (4 Mark)
As a CWM you are required to calculate the tax liability of an individual whose Taxable income is:
* $125000 in US dollars and he is a US citizen (single individual)
* $109000 in SGD and he is a citizen of Singapore
- A. 26480 USD and 15870 SGD
- B. 28460.50 USD and 15680 SGD
- C. 24580.50 USD and 16100 SGD
- D. 27450.10 USD and 14780 SGD
Answer: B
NEW QUESTION 378
Section A (1 Mark)
A trough is ________.
- A. Only something used by farmers to feed pigs and not an investment term
- B. A depression that lasts more than three years.
- C. A transition from a contraction in the business cycle to the start of an expansion
- D. A transition from an expansion in the business cycle to the start of a contraction
Answer: C
NEW QUESTION 379
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