AAFM GLO_CWM_LVL_1 Exam Practice Test Instant Access

Question 1

During ''Early accumulation'' life stage, typical asset allocation should be

A25% equities, rest in fixed income instruments

B50% equities, rest in fixed income instruments

C75% equities, rest in fixed income instruments

D100% equities

Answer : B

Question 2

Which of the following statement is true?

AOrdinary share capital is a high-risk high reward source of finance for investors

BCompanies can freely price their share issues.

CBook building is a process to elicit demand for and price of, securities

DAll of the above

Answer : D

Question 3

Intrinsic value of a stock is

AAs reflected in share price

BAs justified by assets, earning & dividends

CAs reflected by book value

DAs reflected by P/E

Answer : B

Question 4

Which of the following statement is/are correct?

A(i) only

B(ii) only

CBoth (i) & (ii) are correct

DBoth (i) & (ii) are incorrect

Answer : A

Question 5

CAMELS framework was first used in _______.

AUK

BCanada

CIndia

DUS

Answer : D

Question 6

Sunil insured the building of his house for a sum of Rs.500000 against fire insurance. One day the house is totally gutted in a devastating fire. The insurance surveyors certified that the building is a total loss with no salvage value and that the insurable value of the building just prior to the loss was Rs.1000000. The insurer will pay to Sunil:

ARs.1000000

BRs.250000

CRs.500000

DNil

Answer : C

Question 7

The first Mutual fund to offer Sarahia complaint fund IS

AHDFC Mutual Fund

BBirla Sun life Mutual Fund

CTaurus Mutual Fund

DKotak Mutual Fund

Answer : C

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