Selected CWM_LEVEL_2 Chartered Wealth Manager Questions Answers

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

Question 41

Section A (1 Mark)

Which one of the following definitions of hedge fund strategies is not correct?

A market neutral strategy aims to make a return regardless of how overall market prices move

Fixed income arbitrage makes a return by looking at similar fixed income instruments and working out which rise in price

Relative value exploits price differentials in identical financial instruments

Arbitrage takes advantage of pricing anomalies in the prices of the same or similar financial instruments

Question 42

Section A (1 Mark)

In a life insurance contract, offer refers to

Proposer paying the first premium

Proposer’s application form for insurance

Original policy bond

Company brochure duly authenticated

Question 43

Section C (4 Mark)

Rate of 15% p.a compounded annually will be equal to ---------------- % per month.

1.25% per month

1.7149% per month

1.17149% per month

1.117% per month

Question 44

Section C (4 Mark)

A rate of interest of 10% semi-annual compounded quarterly would be equal to -------------------- % per annum compounded annually.

20% per Annum Compounded Annually

21.55% per Annum Compounded Annually

20.50% per Annum Compounded Annually

21% per Annum Compounded Annually