AAFM Chartered Wealth Manager (CWM) Certification Level II Examination CWM_LEVEL_2 Question # 111 Topic 12 Discussion

AAFM Chartered Wealth Manager (CWM) Certification Level II Examination CWM_LEVEL_2 Question # 111 Topic 12 Discussion

CWM_LEVEL_2 Exam Topic 12 Question 111 Discussion:
Question #: 111
Topic #: 12

Section C (4 Mark)

Shekhar has an investment portfolio of Rs.100000; the initial portfolio mix is Rs. 50000 in stocks, Rs.30000 bonds and Rs.20000 in bank. If stock market goes up by 10%, what should Shekhar do under the constant mix policy?


A.

He should sell Rs.5000 of stocks and bonds each and invest it into bonds


B.

He should sell Rs.2500 of stock and buy bonds worth Rs.1500 and Deposit Rs.1000 in bank.


C.

He should buy his portfolio equally


D.

He should sell his portfolio equally


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