Pass the AAFM Chartered Wealth Manager GLO_CWM_LVL_1 Questions and answers with CertsForce

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Viewing questions 261-280 out of questions
Questions # 261:

Actual Loss ratio is

Options:

A.

(Actual Loss + Loss Adjustment Expenses)/ Earned Premium


B.

(Actual Loss - Loss Adjustment Expenses)/ Earned Premium


C.

(Actual Loss + Loss Adjustment Expenses)/ Number of exposure units


D.

(Actual Loss - Loss Adjustment Expenses)/ Number of exposure units


Expert Solution
Questions # 262:

Which one of the following is/are correct?

Question # 262

Options:

A.

(i) only


B.

(ii) only


C.

Both are correct


D.

Both are incorrect


Expert Solution
Questions # 263:

If a stock GHI ltd pays an annual dividend of Rs. 5 and plans to follow this policy for ever, then what would be the ate of return that investor would realize given the current market price of stock is 100

Options:

A.

20%


B.

5%


C.

80%


D.

10%


Expert Solution
Questions # 264:

Sunil insured the building of his house for a sum of Rs.500000 against fire insurance. One day the house is totally gutted in a devastating fire. The insurance surveyors certified that the building is a total loss with no salvage value and that the insurable value of the building just prior to the loss was Rs.1000000. The insurer will pay to Sunil:

Options:

A.

Rs.1000000


B.

Rs.250000


C.

Rs.500000


D.

Nil


Expert Solution
Questions # 265:

What would be the taxable value added in Dr. Vijay Mohan’s income for Gratuity receipt of Rs. 8,00,000 at the time of retirement. He is covered under the Payment of Gratuity Act 1972. He retired after 28 years of service with monthly salary of Rs. 40000 p.m. Assume Income Tax provisions pertaining to AY 2011-12 would be applicable at the time of retirement?

Options:

A.

Rs. 3,50,000


B.

Rs. 2,40,000


C.

Rs. 5,60,000


D.

Rs. 1,53,146


Expert Solution
Questions # 266:

Pure premium is Rs. 5000. Expenses are 20% of the gross (office) premium. Office premium is

Options:

A.

6250


B.

6000


C.

4167


D.

4000


Expert Solution
Questions # 267:

Payment of Gratuity Act 1972 is applicable to

Options:

A.

Every factory establishment


B.

An establishment employing more than 10 employees


C.

Both the above


D.

None of the above


Expert Solution
Questions # 268:

A hired a bicycle from B. The written contract contained a clause which read “Nothing in this agreement shall render the owner liable for any personal injuries to the rider of the machine hired”. Owing to a defect in the brakes of the cycle, A met with an accident and got injured. Can A recover Damages?

Options:

A.

No, since a disclaimer by the owner has already been intimated


B.

Yes, because he is under the duty to take care of the bicycle


C.

No, because it is the rider who has to take care of the brakes


D.

Any of the above


Expert Solution
Questions # 269:

What is the effective rate of interest for 10% compounded monthly, quarterly, semi-annually?

Options:

A.

10.47%, 10.38%, 10.25%


B.

10.45%, 10.40%, 10.23%


C.

10.42%, 10.38%,10.25%


D.

10.47%, 10.36%, 10.25%


Expert Solution
Questions # 270:

Which of the following can be described as involving direct finance?

Options:

A.

A corporation’s stock is traded in an over-the-counter market.


B.

A corporation buys commercial paper issued by another corporation.


C.

A pension fund manager buys commercial paper from the issuing corporation.


D.

Both (B) and (C) of the above.


Expert Solution
Questions # 271:

Stock A & B are positively correlated with a correlation co efficient of .75. When stock A moves up by 12%, how will stock B perform?

Options:

A.

Stock B will move up by 12%


B.

Stock B will move down by 12%


C.

Stock B will move up by 9%


D.

Stock B will move down by 9%


Expert Solution
Questions # 272:

Which of the following is an inferential data (i.e. data which may not be correctly obtained by simply asking a direct question)?

Options:

A.

Time Horizon


B.

Risk appetite


C.

Current Income


D.

Future income requirement


Expert Solution
Questions # 273:

An investor buys 200 units of a Mutual Fund scheme having a reinvestment option at Rs.10.5 on Jan 6, 2011. On June 30, 2011 scheme declares a dividend @10%. The ex-dividend N.A.V. was Rs.10.25. On March12, 2012 the fund N.A.V was Rs.12.25. Calculate CAGR?

Options:

A.

23.45%


B.

27.11%


C.

23.29%


D.

23.99%


Expert Solution
Questions # 274:

A mutual fund that invests in Indian Equities, foreign equities, Indian Corporate Bonds, Indian Government Gilts is subject to the following risks?

Question # 274

Options:

A.

(a) & (c) only


B.

(a), (iii) & (iv) only


C.

(iii) & (iv) only


D.

(a), (ii), (iii) & (iv)


Expert Solution
Questions # 275:

The following parameters are available for two mutual funds:

Question # 275

Calculate Sharpe measure?

Options:

A.

0.10, 0.33


B.

0.8, 0.33


C.

0.22, 0.17


D.

0.18, 0.25


Expert Solution
Questions # 276:

The government regulates financial markets for three main reasons:

Options:

A.

to ensure soundness of the financial system, to improve control of monetary policy, and to increase the information available to investors.


B.

to improve control of monetary policy, to ensure that financial intermediaries earn a normal rate of return, and to increase the information available to investors.


C.

to ensure that financial intermediaries do not earn more than the normal rate of return, to ensure soundness of the financial system, and to improve control of monetary policy.


D.

to ensure soundness of financial intermediaries, to increase the information available to investors, and to prevent financial intermediaries from earning less than the normal rate of return.


Expert Solution
Questions # 277:

Total income of an individual including long-term capital gain of Rs. 50,000 is Rs. 1,10,000, the tax on total income shall be:

Options:

A.

Rs. 1,020


B.

Rs. 2,040


C.

Rs. 2,244


D.

Rs. 3,240


Expert Solution
Questions # 278:

Yash pays health insurance premiums for himself, his wife and his two children aged 13 and 8. Premiums for which of these individuals will qualify as deductible from Yash’s taxable income?

Options:

A.

Yash only


B.

Yash and his wife only


C.

Yash, his wife and his oldest child


D.

Yash, his wife and both his children


Expert Solution
Questions # 279:

Identify the placement techniques in the following statements:

Question # 279

Options:

A.

(i) and (ii)


B.

(i) and (iv)


C.

(ii) and (iii)


D.

(ii) and (iv)


Expert Solution
Questions # 280:

A 12 year annual annuity of Rs. 10000 will begin 8 years hence (the first payment occurs at the end of 8 years). What is the present value of this annuity if the discount rate is 14 percent?

Options:

A.

Rs. 22898.12


B.

Rs. 22620.63


C.

C.Rs. 23456.78


D.

D.Rs. 22124.95


Expert Solution
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Viewing questions 261-280 out of questions