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AAFM GLO_CWM_LVL_1 - Chartered Wealth Manager (CWM) Global Examination

Page: 16 / 16
Total 1057 questions

Mathematically the Efficient Frontier is the intersection of the Set of Portfolios with ....…. Variance and the Set of Portfolios with ……. Return.

A.

Maximum, minimum

B.

Minimum, maximum

C.

Minimum, minimum

D.

None of the above

What is a contract?

A.

An agreement between two or more parties which creates no obligation to do a particular thing.

B.

A contract is an agreement between two or more parties that does not establish an enforceable legal relationship.

C.

Contract consists of reciprocal promise that the law will not enforce.

D.

A contract is the result of a promise to do a certain thing in exchange for a promise from on their person.

Is it possible to reduce the risk by adding a security with a higher risk to a security with a lower risk that is already held?

A.

No, the total risk after the addition will be higher

B.

The new security will have no impact in reducing the risk

C.

Yes, provided both the securities are negatively correlated

D.

Yes, provided both the securities are positively correlated to each other

Partition can be effected orally & there is no requirement in law that the partition must the evident try a written agreement

A.

TRUE

B.

FALSE

The data gathering is done by which of the following instruments given below?

A.

Questionnaire

B.

Interview

C.

Client records

D.

All of the above

How many registered offices can a company have ?

A.

Two.

B.

Three.

C.

one office in each state.

D.

One office totally.

Identify the stage in the money laundering process where funds are being constantly moved or re-characterised to conceal their origins.

This stage is known as:

A.

placement

B.

layering

C.

integration

D.

All of the above

The assessed is charged to income-tax in the assessment year following the previous year:

A.

A non-resident business firm which shipped goods on 1.5.210 at Visakhapatnam Port in Andhra Pradesh

B.

An employee left India to USA on 1.8.2010 with no intention of returning

C.

ABC firm which discontinued its business on 1.9.2010

D.

An employee-assessed of a University who worked during 1.4.09 to 30.03.2010

Which act regulates the name of the company?

A.

Essential commodities act.

B.

Indian contract act.

C.

Trade marks act.

D.

Companies act.

X’s stock declined by the same percentage as the NIFTY on Mad Monday in October 2008. X was the victim of what type of risk?

A.

Financial Risk

B.

Market Risk

C.

Interest Risk

D.

Business Risk

If an assessed earns rent from a sub-tenant in respect to tenanted property let out as a residence, the said rent is:

A.

Exempt under Section 10.

B.

Taxable under the head income from house property.

C.

Taxable as business income, as the letting out is a commercial activity.

D.

Taxable as income from other sources, unless the assessed is in the business of subletting properties on a regular basis.

Some institutions may be used by criminals to transfer and hide illegal wealth. The institutions are often located in countries with well-developed secrecy laws and attractive tax structures.

These institutions are called:

A.

Offshore banks

B.

Trusts

C.

Shell companies

D.

Front companies

Customers with good credit rating is eligible for ……………

A.

Sub prime mortgage

B.

Simple

C.

Prime rate mortgage

D.

Reverse mortgage

Which of the following determines the exchange rate?

A.

Demand of foreign exchange.

B.

Supply of foreign exchange.

C.

Both A&B

D.

Inflation rate.

Liability of a member in case of a private company is

A.

Limited

B.

Unlimited

C.

Both (a) or (b)

D.

None of the above

A company is eligible to issue Commercial Paper when its tangible net worth is not less than :

A.

3.75 Crores

B.

4.5 Crores

C.

4 Crores

D.

3 Crores

In case of monthly premium payments, days of grace are

A.

10 Days

B.

15 Days

C.

30 Days

D.

Three Weeks