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

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Question # 25

Section C (4 Mark)

Belstate reported net income of Rs221 million in 1993 on revenues of Rs8298 million. It paid out 31% of its earnings as dividends, a payout ratio that is expected to remain level from 1994 to 1998, during which period earnings growth is expected to be 13.5%. After 1998, earnings growth is expected to decline to 6%, and the dividend payout ratio is expected to increase to 60%. The beta is 1.15 and this figure is expected to remain unchanged. The treasury bill rate is 7%.

Estimate the price/sales ratio for Walgreens, assuming its profit margin remains unchanged at 1993 levels.

A.

0.35

B.

0.275

C.

0.25

D.

0.52

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Question # 26

Section A (1 Mark)

The Eligibility Criteria for Personal Loans for Self Employed Professionals & Businessman in India states that the minimum age of the applicant should be:

A.

21

B.

25

C.

18

D.

None of the Above

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Question # 27

Section A (1 Mark)

A ____________________ tax system places a relatively large tax burden on lower-income people and a relatively small tax burden on upper-income people.

A.

Proportional

B.

Progressive

C.

Regressive

D.

All of the above

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Question # 28

Section A (1 Mark)

The __________the suggested deviation from the rational portfolio asset allocation, the _________ the need to mitigate the investor’s behavioral biases

A.

Lower and Greater

B.

Higher and Lower

C.

Equal and Same

D.

None of these

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Question # 29

Section A (1 Mark)

Which of the following is/are the challenges of Private Banking?

A.

I, II and III

B.

I,III and IV

C.

I, II and IV

D.

All of Them

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Question # 30

Section A (1 Mark)

Pure premium and Loss Ratio methods are two methods to determine

A.

Judgement Rated premium

B.

Class rated premium

C.

Merit rated premium

D.

None of the above

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Question # 31

Section A (1 Mark)

After the satisfaction of insured’s claim from the insurer, the insured should pursue in the recovering of rights from the 3rd party.

A.

Yes, If he is willing to do so

B.

No, there is no obligation on his part

C.

Yes, he has a duty to the same

D.

Yes, if there is a mutual consent between insurer & the insured

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Question # 32

Section C (4 Mark)

Read the senario and answer to the question.

For the purpose of World Tour Nimita has an option to use her investments in PPF A/c. She would contribute maximum permissible amount on the 1st working day of April every year till its due maturity as well as in all years of the extension of account for a 5-year term after its due maturity. She wants to use half of the PPF account proceeds for the proposed world tour. You estimate the adequacy of such amount, the same is _____________.

A.

Short by Rs. 44,200

B.

In excess by Rs. 1,05,400

C.

Short by Rs. 44,200

D.

In excess by Rs. 52260

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