GLO_CWM_LVL_1 Exam Dumps - Chartered Wealth Manager (CWM) Global Examination

The internal rate of return (IRR) is a capital budgeting method used by firms to decide whether they should make long-term investments.

The IRR is the annualized effective compounded return rate which can be earned on the invested capital, i.e. the yield on the investment.

IRR is defined as any discount rate that results in a positive net present value (present value of cash flows- initial investment) of zero of a series of cash flows.

In general, if the IRR is greater than the project’s cost of capital or hurdle rate, the project will not be accepted at any cost.

RBI

SEBI

CLB

None of the above

Seek, Measure, Attainable, Realistic, Time bound

Seek, Monitor, Attainable, Realistic, Time bound

Specific, Measurable, Attainable, Realistic, Time bound

Specific, Measurable, Attainable, Rewarding, Time bound

Casual Income & fully taxable

Casual Income & exempt up to Rs. 5000

Fully exempt

None of the above

6 months

9 months

3 months

12 moths

the realized return was less than the return earned by the market

the required return exceeded the realized return

the investor constructed a poorly diversified portfolio

the investor's portfolio had excessive diversification

of utmost good faith

Let the buyer be aware

Making good the loss

None of the above

True

FALSE