CWM_LEVEL_2 Exam Questions Get Updated [2021] with Correct Answers
Practice CWM_LEVEL_2 Questions With Certification guide Q&A from Training Expert VCEEngine
NEW QUESTION 663
Section B (2 Mark)
You are estimating the value of a small office building. Suppose the estimated NOI for the first year of operations is Rs100,000. a. If you expect that NOI will remain constant at Rs100,000 over the next 50 years and that the office building will have no value at the end of 50 years, what is the present value of the building assuming a 12.2% discount rate?
- A. Rs 8,95,154
- B. Rs 8,17,078
- C. Rs 7,56,125
- D. Rs 9,51,254
Answer: B
NEW QUESTION 664
Section C (4 Mark)
Read the senario and answer to the question.
Mr. Bhatia owns a Maruti Wagonr with a monthly EMI of Rs. 6,312. The above loan will be completely repaid by August 2008. Mr. Bhatia planning to purchase a new car worth of Rs. 15 lakh. For this he has to take a full value loan of the car with 9% interest for 5 years. But his present car is in good condition and life of this car is approximately another 5 years repairs and maintenance cost are minimum. If he postpones his car purchasing plan now and deposit the same EMI outflow required for new car into an SIP with a minimum 15% yield for the next five years, then calculate the fund he can accumulate?
- A. Rs. 30.47 lacs
- B. Rs. 27.58 lacs
- C. Rs. 23.66 lacs
- D. Rs. 23.49 lacs
Answer: B
NEW QUESTION 665
Section C (4 Mark)
Read the senario and answer to the question.
Which types(s) of investment(s), would be consistent with their retirement goal?
- A. (I) and (III) only
- B. (II) and (IV) only
- C. (I) only
- D. (I) and (IV) only
Answer: A
NEW QUESTION 666
Section A (1 Mark)
A(n) _________________________ combines a normal debt instrument with a credit option. It allows the issuer of the debt instrument to lower its loan repayments if some significant factor changes.
- A. standby letter of credit
- B. credit swap
- C. Credit Futures
- D. credit linked note
Answer: D
NEW QUESTION 667
Section A (1 Mark)
A(n) _____________ is an over-the-counter agreement offering protection against loss when default occurs on a loan or other debt instrument.
- A. Credit Derivative Obligation
- B. Credit Derivative
- C. Collateralized Default Obligation
- D. Collateralized Debt Obligation
Answer: B
NEW QUESTION 668
Section A (1 Mark)
According to the __________________ if irrational traders cause deviations from fundamental value, rational traders will often be powerless to do anything about it.
- A. Present-biased preferences
- B. Theory of Limited Arbitrage
- C. Inter Temporal Consumption
- D. Equity premium puzzle
Answer: B
NEW QUESTION 669
Section B (2 Mark)
Eric, who has lived in the Netherlands for the whole of his life, arrives in the UK on 1 June 2011 and remains in the UK until 31 December 2011, when he returns permanently to the Netherlands. His UK residence status for 2011-12 is:
- A. Neither resident nor ordinarily resident
- B. Ordinarily resident but not resident
- C. Resident but not ordinarily resident
- D. Resident and ordinarily resident
Answer: C
NEW QUESTION 670
Section A (1 Mark)
For making a personal financial statement for a client, the optimum cash levels would be
- A. 2-3 months of cash requirement
- B. 1 year of cash requirement
- C. 6-9 months of cash requirement
- D. 4-6 months of cash requirement
Answer: D
NEW QUESTION 671
Section B (2 Mark)
Mr. Manish purchased a residential house for Rs.3 lakh on 1-4-1972. Its market value on 1-4-1981 was, however, Rs.12 lakh. He sells the house during the financial year 2011-12 for Rs.98 lakh. Calculate the taxable long term capital gain.[CII-12-13: 852,11-12: 785,10-11:711]
- A. Rs. 7,10,000/-
- B. Rs. 10,90,000/-
- C. Rs. 12,90,000/-
- D. Rs. 3,80,000/-
Answer: D
NEW QUESTION 672
Section B (2 Mark)
Mrs. Dikshit is a single, sixty-five year old with a modest lifestyle and no income beyond what her investment portfolio of Rs1,00,00,000 generates. Her primary investment goal is to not outlive her assets; she does not, under any circumstances, want to lose money because she recalls that her relatives lost money in the crash of
2000. Mrs. Dikshit exhibits these behavioral biases:
- A. Representative bias
- B. Framing bias
- C. Availability bias
- D. loss aversion and anchoring and adjustment
Answer: D
NEW QUESTION 673
Section B (2 Mark)
There are three stocks, A, B, and C. You can either invest in these stocks or short sell them. There are three possible states of nature for economic growth in the upcoming year; economic growth may be strong, moderate, or weak. The returns for the upcoming year on stocks A, B, and C for each of these states of nature are given below:
If you invested in an equally weighted portfolio of stocks A and B, your portfolio return would be
___________ if economic growth were moderate.
- A. 16.00%
- B. 15.50%
- C. 3.00%
- D. 14.50%
Answer: A
NEW QUESTION 674
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 675
Section B (2 Mark)
Shiva Industries Ltd. earns Rs. 2 per share and distributes 40% of its earnings as cash dividends. Its dividends grew annually at 7%. What will be the stock's price if the required rate is 10%?
- A. Rs. 28.53
- B. Rs. 21.40
- C. Rs. 31.25
- D. Rs. 29.50
Answer: A
NEW QUESTION 676
Section A (1 Mark)
In case of self occupied property, higher deduction u/s24(b) for interest on loan for construction can be claimed if borrowing was made
- A. On or after 1/9/2004
- B. Before 1/4/99
- C. After 1/4/99
- D. On or after 1/4/99
Answer: D
NEW QUESTION 677
Section B (2 Mark)
Which one of the following statements is/are correct?
- A. Both are correct
- B. Both are incorrect
- C. (ii) only
- D. (i) only
Answer: B
NEW QUESTION 678
Section B (2 Mark)
Which of the following statements with respect to Transfer Pricing is/are correct?
- A. I and II
- B. I, II and III
- C. I, III and IV
- D. II, III and IV
Answer: A
NEW QUESTION 679
Section A (1 Mark)
HNWI stands for
- A. High Non Working Individuals
- B. None of the above
- C. High Net Worth Individuals
- D. High Net Worth Industries
Answer: C
NEW QUESTION 680
Section B (2 Mark)
As per Double Taxation Avoidance Agreement, the Royalties in Mauritius is charged at:
- A. Nil
- B. 0
- C. 1
- D. 2
Answer: B
NEW QUESTION 681
Section B (2 Mark)
As per Double Taxation Avoidance Agreement, the Technical Fees in UAE is charged at:
- A. Nil
- B. 22.5
- C. 0
- D. 1
Answer: B
NEW QUESTION 682
......
Prepare Top AAFM CWM_LEVEL_2 Exam Audio Study Guide Practice Questions Edition: https://testking.vceengine.com/CWM_LEVEL_2-vce-test-engine.html
