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CWM_LEVEL_2 Exam Dumps - Chartered Wealth Manager (CWM) Certification Level II Examination

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Question # 73

Section C (4 Mark)

Shikha has an investment portfolio of Rs.100000, a floor of Rs.75000, and a multiplier of 2. So the initial portfolio mix is 50000 in stocks and 50000 in bonds. If stock market goes up by 20%, what should Shikha do?

A.

She should sell Rs.10000 of stocks and invest it into bonds

B.

She should sell Rs.10000 of bonds and invest it into stocks

C.

She should buy Rs.10000 of stocks and sell Rs.10000 of bonds

D.

She should sell his portfolio equally

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Question # 74

Section A (1 Mark)

Single men trade far more often than women. This is due to greater ________ among men.

A.

Framing

B.

Regret avoidance

C.

Overconfidence

D.

Conservatism

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Question # 75

Section A (1 Mark)

A bank is considering making a loan to Ram Kapoor. Ram has a gross salary per month of Rs40500 but has take-home pay of Rs27500 per month. What aspect of evaluating a consumer loan application is this fact most concerned with?

A.

Character and purpose

B.

Income level

C.

Deposit balance

D.

Pyramiding of debt

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Question # 76

Section A (1 Mark)

Family Offices provide _____________

A.

Specialist advice and planning

B.

Investment Management

C.

Administration

D.

All of the above

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Question # 77

Section A (1 Mark)

Select the correct statement regarding the market portfolio. It:

A.

Is readily and precisely observable.

B.

Is a risky portfolio.

C.

Is the lowest point of tangency between the risk-free rate and the efficient frontier

D.

Should be composed of stocks or bonds.

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Question # 78

Section A (1 Mark)

Any property inherited by a female Hindu from her husband or from her father in law, in the absence of any son or daughter of the deceased shall go to…..

A.

Heir of mother

B.

Heir of father

C.

Heir of Husband

D.

Heir of Sister

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Question # 79

Section B (2 Mark)

Which of the following statements is / are correct?

A.

I, II and III

B.

I,III and IV

C.

II, III and IV

D.

All of the above

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Question # 80

Section C (4 Mark)

An investor purchased on margin Alpha Computer for Rs. 30/- a share. The stock's price subsequently rose to Rs. 50/- a share at which time the investor sold the stock. If the margin requirement is 60 percent and the interest rate on borrowed funds was 7 percent, what would be the percentage earned on the investor's funds (excluding commissions)? What would have been the return if the investor had not bought the stock on margin?

A.

108.47%, 52.36%

B.

106.44%, 66.7%

C.

102.23%, 57.39%

D.

95.26%, 47.27%

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