AAFM Chartered Wealth Manager (CWM) Certification Level II Examination - CWM_LEVEL_2 Exam Practice Test

Section B (2 Mark)
Non-Resident (NR) is __________on Indian Income and ___________on Foreign Income.

Section C (4 Mark)
Read the senario and answer to the question.
Raman is considering the purchase of a office building and, as part of his analysis, from the following given data calculate the appraised value of the property using the Income Approach?

Section A (1 Mark)
Wealth Conservation is _____________

Section A (1 Mark)
_______________ and _______________ mandates are two kinds of service level contracts

Section A (1 Mark)
Under which of the following categories of General Warranty Deed does the buyer is guaranteed that the title will be good against third parties attempting to establish title to the property?

Section C (4 Mark)
Mudra Financial is a large financial firm which owns several mutual funds. The funds are managed individually by portfolio managers but it has an investment committee that overseas all of the funds. This committee is responsible for evaluating the performance of the funds relative to the appropriate benchmark and relative to stated investment objectives of each individual fund. During a recent investment committee meeting, the poor performance of Its Equity Funds were discussed. In particular, the inability of the portfolio managers to outperform their benchmarks was highlighted. The net conclusion of the committee was to review the performance of the manager responsible for each fund and dismiss those managers whose performance had lagged substantially behind the appropriate benchmark.
The fund with the worst relative performance is the Mudra Large Cap Fund which invests in large cap stocks.
A review of the operations of the fund found the following:
* The turnover of the fund was almost double that of other similar style mutual funds
* The fund's portfolio manager solicited input from her entire staff prior to making any decision to sell an existing holding
* The beta of the Mudra Large Cap Fund's portfolio was 65% higher than the beta of other similar style mutual funds
* The portfolio manager refuses to increase the Capital Goods sector weighting because of past losses the fund incurred in the sector
* The portfolio manager sold all the fund's Oil Marketing Companies stocks as the price per barrel of oil rose above $105. He expects oil prices to fall back to the $80 to $85 per barrel
* No stock is considered for purchase in the Large Cap Fund unless the portfolio manager has 10 years of financial information on that company.
The underweighting of the Capital Goods sector and selling off Oil Marketing Stocks could be best described as an example of:

Section A (1 Mark)
Which of the following comes at the high end of product margin in the value added pyramid of wealth management?

Section A (1 Mark)
Which of the following might be used as a factor in an APT factor model?

Section B (2 Mark)
IFB Stock currently sells for Rs38. A one-year call option with strike price of Rs45 sells for Rs9, and the risk free interest rate is 4%. What is the price of a one-year put with strike price of Rs45?

Section A (1 Mark)
A bank that wants to protect itself from higher credit costs due to a decrease in its credit rating might purchase
_________________________.

Section A (1 Mark)
Mansi has deposited Rs. 7,00,000/- in a bank today @ ROI of 10 % per annum compounded monthly. She wants to know that if she withdraws this money in monthly installments at the END of the month for 7 years, then how much will be the each installment amount?

Section B (2 Mark)
Which of the following statements is / are correct?

Section A (1 Mark)
During "Early accumulation" life stage, typical asset allocation should be