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Free AAFM Chartered Wealth Manager (CWM) Global Examination GLO_CWM_LVL_1 Exam Questions

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Question 1

Ramesh has invested Rs. 70,000, 30% of which is invested in Company A, which has an expected rate of return of 15%, and 70% of which is invested in Company B, with an expected return of 12%. What is the expected percentage rate of return?

Correct Answer: B. Rs. 12.90%

Question 2

Which of the following statements in reference to REPO Rate is/are correct?

Correct Answer: B. I and II

Question 3

Which of the following is/are the incorrect pairing in the history of exchange rate regime?

Correct Answer: B. Only B

Question 4

Dividend per share of Books Ltd. is 2 and required rate of return is 10%. Calculate the value of share of Books Ltd.

Correct Answer: C. 20

Question 5

What is the future value of Rs. 5000 at the end of 5 years at 8% compounded annually?

Correct Answer: A. 7346.64

Question 6

Notice of loss should be given to the insurer within ________days of the event of loss.

Correct Answer: C. 7

Question 7

Gilt schemes are a type of

Correct Answer: D. Debt Schemes

Question 8

Sudesh Haldia is employed at Delhi as Store Manager in one of the Retail Companies. The particulars of his salary for the previous year 2006-07 are as under:

The actual rent paid by him is Rs. 2,000 p.m. for an accommodation at Noida till 31-12-2006.From 1-1-2007 the rent was increased to Rs. 4000 p.m. Compute the taxable HRA?

Correct Answer: A. Rs. 16, 500

Question 9

Mr. Rajesh Rawat deposits Rs. 15,000 per month at the end of the month for 6.50 years in an account that pays a ROI of 8.80% per annum compounded quarterly. What will be the amount in the account after 6.50 years.?

Correct Answer: B. 1567650

Question 10

The share of a certain stock paid a dividend of Rs.10.00 last year. The dividend is expected to grow at a constant rate of 15 percent in the future. The required rate of return on this stock is considered to be 18 percent. How much should this stock sell for now? Assuming that the expected growth rate and required rate of return remain the same, at what price should the stock sell 4 years hence?

Correct Answer: B. Rs. 383.33, Rs. 670.45

Question 11

A 12 year annual annuity of Rs. 10000 will begin 8 years hence (the first payment occurs at the end of 8 years). What is the present value of this annuity if the discount rate is 14 percent?

Correct Answer: B. Rs. 22620.63

Question 12

Urban land means land situated within the jurisdiction of local authority which has a population of not less than ...................... as per last ensure

Correct Answer: D. 10000

Question 13

Wealth Erosion can happen due to _______

Correct Answer: D. All of the above

Question 14

The following is an exempt income:

Correct Answer: A. Travel concession to employee

Question 15

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?

Correct Answer: B. 60