CWM_LEVEL_2

Section B (2 Mark) Mrs. Sharma, a 40-year-old widow, has an 8-year-old son. Her current savings are not adequate to provide for her son’s post graduate studies, however she will be able to save for it by the time he finishes graduation i.e. when he is 20 years old. Mortality...

Section A (1 Mark) Which of the following statements is/are correct with respect to naïve diversification? A . Only IB . Only IIC . Both of the aboveD . None of the AboveView AnswerAnswer: C

Section B (2 Mark) Rakhi purchased a piece of land on 25-4-1979 for Rs.80000. This land was sold by him on 23-12-2011 for Rs.1250000. The market value of the land as on 1-4-1981 was Rs.98000. Expenses on transfer were 1.5% of the sale price. Compute the capital gain for the...

Section C (4 Mark) Consider the following information for three mutual funds: Market Return 10% Risk free return is 7%. Calculate Jensen measure (%).A . 1.70, 5.30, 3.40B . 2.25, 3.78, 4.65C . 4.35, 3.78, 2.53D . 3.17, 4.58, 5.78View AnswerAnswer: A

Section A (1 Mark) Which of the following is true regarding the resistance level?A . Resistance levels tend to develop due to profit taking.B . It is the level at which a significant decrease in demand is expected.C . It is the level at which a significant increase in supply...

Section B (2 Mark) In the year to 31 March 2012, A Ltd (which is UK resident) made a UK trading profit of £100,000. The company's only other income consisted of rents received of £52,500 (net) from an investment property in Germany. These rents were received net of withholding tax...

Section A (1 Mark) If a portfolio manager consistently obtains a high Sharpe measure, the manager's forecasting ability __________.A . is above averageB . is averageC . is below averageD . None of the AboveView AnswerAnswer: A

Section A (1 Mark) A company making an IPO can avail which of the following option?A . Differential PricingB . Price bandC . Green-shoeD . All of the aboveView AnswerAnswer: D

Section A (1 Mark) Which of the following is not true in respect of CIBIL?A . Pulling up CIBIL report is mandatory for all loans.B . Mandate for pulling up the report and sharing of information from customer is mandatory.C . Report is to be pulled up at the front...

Section C (4 Mark) Zoya Ltd has the following Balance sheet for FY 2005-2006: The Total Sales for the year was Rs. 6,00,000. The company president believes the company carries excess inventory. Accordingly he wants the inventory turnover ratio to be 8x and would use the freed up cash to...