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AAFM CWM_LEVEL_2 Online Access

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Total 1259 questions

Chartered Wealth Manager (CWM) Certification Level II Examination Questions and Answers

Question 109

Section C (4 Mark)

Read the senario and answer to the question.

During identification of new business opportunities, one of Harish’s friends Shekhar has offered him a business proposal. In this proposal a partnership firm consisting of two partners, Harish and Shekhar, shall take the franchise of a company which is a reputed brand in the field of pathology lab in which their investment and profit sharing ratio shall be equal.

Franchise rights shall be valid for 5 years and the project requires an upfront investment of Rs. 25 lakh for required infrastructure. The franchisee agreement has an option that the company can take over the franchisee after 5 years by charging depreciation @15% p.a. on straight line basis.

The projected profits from the firm are as follows:

Harish wants to know what IRR he will earn on his investment from this project ? (Please ignore taxes and assuming no additional investment is made during this five year period)

Options:

A.

8.20%

B.

5.17%

C.

12.27%

D.

7.82%

Question 110

Section A (1 Mark)

In the start-up stage of the industry life cycle

Options:

A.

It is difficult to predict which firms will succeed and which firms will fail.

B.

Industry growth is very rapid.

C.

Firms pay a high level of dividends.

D.

A and B.

Question 111

Section C (4 Mark)

You own 3 scripts with their market value at

Calculate the CAGR of portfolio.

Options:

A.

5%

B.

10.26%

C.

1.64%

D.

11.16%

Question 112

Section A (1 Mark)

Limited growth prospects are indicated by

Options:

A.

High dividend

B.

High P/E ratio

C.

Low dividend

D.

High dividend and low P/E ratio

Page: 28 / 47
Total 1259 questions