CWM_LEVEL_2

Section C (4 Mark) Read the senario and answer to the question. Jogen commuted his 40% of pension in April, 2008 with Rs. 2,15,000. What would be the taxable amount on commuted pension received by Jogen, if he would retire from a private organization?A . Rs. 1,07,500B . Rs. 35,833C...

Section B (2 Mark) Consider the one-factor APT. The variance of returns on the factor portfolio is 6%. The beta of a well-diversified portfolio on the factor is 1.1. The variance of returns on the well-diversified portfolio is approximately __________.A . 3.60%B . 6.00%C . 7.30%D . 10.10%View AnswerAnswer: C

Section C (4 Mark) Read the senario and answer to the question. Compute Expanded Liquidity Ratio before his retirement as (beginning of October 2007) and find out for how many months of expenses, his liquid assets are sufficient enough to cover?A . 44.26B . 47.73C . 49.85D . 50.44View AnswerAnswer:...

Section A (1 Mark) An example of a highly cyclical industry is ________.A . The automobile industryB . The tobacco industryC . The food industryD . A and BView AnswerAnswer: A

Section C (4 Mark) Read the senario and answer to the question. You have reviewed the investments of Nimita for the purview of retirement. You advise that a balance be restored from risk perspective and accordingly Rs. 15 lakh be shifted to a Debt MF scheme. You advise to further...

Section A (1 Mark) The critical variable in the determination of the success of the active portfolio is ________.A . Alpha/systematic riskB . Alpha/nonsystematic riskC . Gamma/systematic riskD . Gamma/nonsystematic riskView AnswerAnswer: B

Section C (4 Mark) Puspinder Singh Ahluwalia took a housing loan on 1st. of June 2009 (EMI in arrear) of Rs. 50 lacs at a ROI of 10.75% p.a. compounded monthly for 12 years. He wants to know the deduction in taxable income he can claim u/s 24 of the...

Section B (2 Mark) Withholding Tax Rates for payments made to Non-Residents are determined by the Finance Act passed by the Parliament for various years. The current rates for Royalities are:A . 10B . 15C . 20D . 18View AnswerAnswer: C

Section A (1 Mark) Manoj owns five hundred shares of ABC Ltd. Around budget time, he gets uncomfortable with the price movements. Which of the following will give him the hedge he desires (assuming that one futures contract = 100 shares)?A . Buy 5 ABC Ltd. futures contractsB . Sell...

Section B (2 Mark) Mr. Jatin is a single forty nine year-old pharmaceutical executive earningRs25,00,000 per year. He lives extravagantly, occasionally spending more than his income, but has saved approximately Rs. 15,00,000. His primary investment goal is to donate Rs30,00,000 to his alma mater, but cannot obtain life insurance. Mr....