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

Section A (1 Mark)Which of the following is not true in respect of CIBIL?

• Pulling up CIBIL report is mandatory for all loans.
• Mandate for pulling up the report and sharing of information from customer is mandatory.
• Report is to be pulled up at the front end.
• None of the above.

Section A (1 Mark)In hedge funds the risk of no standard platform for measurement and no standard format for reporting is called __________________

• Process Risk
• Mapping Risk
• Transparent Risk
• Data Risk

Section B (2 Mark)Consider the single-factor APT. Stocks A and B have expected returns of 15% and 18%, respectively. The risk-free rate of return is 6%. Stock B has a beta of 1.0. If arbitrage opportunities are ruled out, stock A has a beta of __________.

• 0.67
• 1
• 1.3
• none of the above

Section B (2 Mark)A person is treated as being UK resident for a tax year if he or she is physically present in the UK for at least ___ days in the year or makes regular visits to the UK averaging at least ___ days per year. Fill in the blanks.

• 183, 91
• 91, 183
• 182, 90
• 90, 182

Section A (1 Mark)Which portion of his property can a muslim normally be guest according to muslim personal law?

• One Fourth
• One Third
• Half
• Fully

Section B (2 Mark)The arbitrage pricing theory (APT) and the CAPM both assume all except which of the following?

• Investors have homogeneous beliefs.
• Investors are risk-averse utility maximizers.
• Borrowing and lending can be done at the rate RF.
• Markets are perfect.

Section B (2 Mark)If after the partition of an HUF 2 members became partners in 3 firms on behalf of their respective HUFs and they also become partners in a fourth firm. The funds were obtained by means of loans from the other 3 firms. The share incomes of the members from the fourth firm were assessable as their individual income only.

• TRUE
• FALSE

Section A (1 Mark)Land plus anything permanently fixed on it, including building, sheds and other items attached to the structure refers to _____.

• Real Estate
• Real Estate investment
• Property Trust
• Any of the above

Section B (2 Mark)What is the expected percentage price change for a bond with an effective duration of nine in response to an increase in yield of 30 basis points?

• -2.70%
• 2.70%
• 0.30%
• 3.00%

Section B (2 Mark)What is the PV of an Annuity Due which provides Rs. 2,000/- per month for first 3 years and then Rs. 3,000/- per month for next 2 years. This annuity starts 4 years from now and ROI is 9 % per annum compounded monthly?

• 81234.87
• 66159.94
• 80704.76
• 79453.34