CWM_LEVEL_2 exam

Section A (1 Mark) A well-diversified portfolio is defined asA . One that is diversified over a large enough number of securities that the nonsystematic variance is essentially zero.B . One that contains securities from at least three different industry sectors.C . A portfolio whose factor beta equals 1.0.D ....

Section A (1 Mark) Which of the following is true regarding the resistance level?A . It tends 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 is...

Section A (1 Mark) The difference between the cash price and the futures price on the same asset or commodity is known as theA . BasisB . SpreadC . Yield spreadD . PremiumView AnswerAnswer: B

Section B (2 Mark) Amount of liability of payment of gratuity is calculated at the rate ofA . One month’s wage for each completed year of serviceB . 20days wages for each completed year of serviceC . Half a month’s wage for each completed year of serviceD . 15 day’s...

Section B (2 Mark) Manish is thinking of acquiring some shares of ABC. Ltd. The rate of returns is as follows: Calculate the variance and the standard deviationA . 16, 8B . 8, 16C . 7.4, 54.3D . 35.04, 5.92View AnswerAnswer: D

Section A (1 Mark) Response of listening falls under which one of the following categories?A . It can be verbalB . It can be nonverbalC . It can be verbal or nonverbalD . It can neither be verbal nor nonverbalView AnswerAnswer: C

Section B (2 Mark) You have been asked to estimate the market value of an apartment complex that is producing annual net operating income of Rs44,500. Four highly similar and competitive apartment properties within two blocks of the subject property have sold in the past three months. All four offer...

Section A (1 Mark) The first step of portfolio management is:A . To assess market conditions.B . To determine objectives, constraints and preferences.C . To develop strategies and implement them.D . To adjust the portfolio as necessary.View AnswerAnswer: B

Section A (1 Mark) Which of the followings are the important features of Real estate Investment?A . Property rightsB . Time horizonC . Geographic AreaD . All of the aboveView AnswerAnswer: D

Section B (2 Mark) The _________ is a plot of __________.A . CML, individual stocks and efficient portfoliosB . CML and both efficient and inefficient portfolios, onlyC . SML and individual securities and efficient portfoliosD . SML and individual securities, inefficient portfolios, and efficient portfolios.View AnswerAnswer: C