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

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Question # 113

Section A (1 Mark)

The two major types of real estate are ____ and ___ .

Commercial, residential

Commercial, personal

Personal, residential

(a) And (b) both

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Question # 114

Section C (4 Mark)

Consider the following information for three mutual funds

Risk free return is 7%. Calculate Treynor measure?

4.55, 8.89, 5.83

3.25, 6.78, 4.65

4.35, 7.78, 4.35

3.75, 7.85, 5.78

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Question # 115

Section B (2 Mark)

Why do share prices usually drop when news about decline in a companyâ€™s earnings per share is reported?

Because a reduction in a earnings means that the firm has less money with which to pay dividends and therefore the market fears a reduction in the companyâ€™s future dividends.

Because the share market anticipates that a decreased level of earning power might be the indicator of default and perhaps even bankruptcy.

The statement is false. Share prices do not usually react about current earnings.

Both (a) and (b) are true

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Question # 116

Section B (2 Mark)

Which of the following two outcomes is an example of Loss Aversion Bias:

Both of the above

None of the above

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Question # 117

Section A (1 Mark)

Following is/ are the component(s) of Personal Financial Statements

Cash Flow Statement

Income Statement

Balance Sheet

All of the above

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Question # 118

Section B (2 Mark)

Calculate the value at which an office building can be priced from the following information:

A similar building has 8% capitalization rate.

Rs. 23,87,500

Rs. 19,11,000

Rs. 22,93,500

Rs. 21,10,000

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Question # 119

Section B (2 Mark)

An investor is bearish about Tata Motors and sells ten one-month ABC Ltd. Futures contracts at Rs.6,06,000. On the last Thursday of the month, Tata Motors closes at Rs.600. He makes a _________. (assume one lot = 100)

Profit of Rs. 6,000

Loss of Rs. 6,000

Profit of Rs. 8,000

Loss of Rs. 8,000

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Question # 120

Section A (1 Mark)

A financial contract that obligates one party to exchange a set of payments it owns for another set of payments owned by another party is called a

Hedge.

Call option.

Put option.

Swap.