AAFM GLO_CWM_LVL_1 Chartered Wealth Manager (CWM) Global Examination Exam Practice Test

The probability distribution of the rate of return on ABC stock is given below:

What is the standard deviation of return?

Rhona has a daughter Zena five years old. She wants to plan for Zena's education and has found out that she would be requiring 2,75,000 at her age 18 and another 4,50,000 on her age 25. She also wants to have Rs. 10,00,000 for Zena's Marriage which she expects at the age of 28. She wants to deposit the entire amount for these expenses today in an account that pays a ROI of 15% per annum compounded annually. What would this amount be?

Given the following information:

What is the expected return and standard deviation of the portfolio if 50% of funds invested in each stock? What would be the impact if the correlation coefficient were 0.6 instead of 0.2?

Sonia works at the post office. She deposits Rs. 1000 on every birthday into a retirement plan which paid an interest rate of 8% from the age of 20 years until she retired. If she had Rs. 260000 in her retirement plan when she retired, at what age did she retire?

Akash owns a piece of land situated in Kolkata ( Date of acquisition : March 1, 1983, Cost of acquisition Rs. 20,000/- value adopted by Stamp duty authority at the time of purchase Rs. 45,000/-) On March 30, 2012 the piece of land is transferred for 4 lakh. Find out the capital gains chargeable to tax if the value adopted by the Stamp duty authority is 5.75 lakh. And X files an appeal under the Stamp Act and Stamp duty valuation has been reduced to Rs. 4.90 lakh by the Kolkata High Cout. [CII-12-13: 852,11-12: 785,10-11:711]

The Portfolio consists of two securities, X and Y in the ratio of 70:30. Given that

and covariance between them is 16%, what is the portfolio risk?

Which assets are totally except from wealth tax?