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Newly Released AAFM CWM_LEVEL_2 Exam PDF

Page: 26 / 47
Total 1259 questions

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

Question 101

Section A (1 Mark)

Hedge funds often seek to take advantage of market inefficiencies such as:

Options:

A.

High transaction costs.

B.

Pricing differentials between derivative contracts and the underlying security.

C.

Technological developments aiding informational efficiencies.

D.

Similar prices in different geographic locations.

Question 102

Section A (1 Mark)

Ideally, clients would like to invest with the portfolio manager who has

Options:

A.

A moderate personal risk-aversion coefficient.

B.

A low personal risk-aversion coefficient.

C.

The highest Sharpe measure.

D.

The highest record of realized returns.

Question 103

Section B (2 Mark)

Which of the following is/are the Potential Challenges for wealth management players in India?

Options:

A.

I, III, IV and V

B.

II, III, IV and V

C.

I, II and III

D.

All of the above

Question 104

Section C (4 Mark)

OMG Petro Ltd produces and markets crude oil. The following are selected numbers from the financial statements for 1992 and 1993 (in millions).

The firm had capital expenditures of Rs950 million in 1992 and Rs1 billion in 1993. The working capital in 1991 was Rs190 million, and the total debt outstanding in 1991 was Rs5.75 billion. There were 305 million shares outstanding, trading at Rs21 per share.

Estimate the cash flows to equity in 1992 and 1993(in Rs Millions)

Options:

A.

133 and (300)

B.

725 and 285

C.

350 and 185

D.

202 and 301

Page: 26 / 47
Total 1259 questions