GLO_CWM_LVL_1 Exam Dumps - Chartered Wealth Manager (CWM) Global Examination
Once the client accepts the proposal to prepare a wealth plan what is the next thing done by a wealth manager?
Government has changed certain industries related regulation in Parliament, it is an example of:
Which of the following is true for written down value method of calculating depreciation?
Saurabh Gulati was thinking of acquiring some shares of AB ltd. The expected rate of return is as follows:
Compute the expected return on the investment?
"When a customer opts for a safe deposit locker, the bank becomes a _______."
Compute Gross Total income and amount of loss allowed to be carried forward to next year:
Mr Ram aged 53 years has put in 21 years of service in a PSU opts for a voluntary retirement under the company scheme. He has 5 years and 3 months of service left and his last drawn salary is Rs 18,000. He received Rs 10,00,000 as compensation. What would be the taxable part of this receipt?
Any income chargeable under the based “Salaries†is exempt from tax under Section 10(6)(viii), if it is received by any non resident individual as remuneration for services rendered in connection with his employment in a foreign ship where his total stay in India does not exceed a period days in that previous year.
Pranoy is entitled to a basic salary of Rs. 5,000 p.m. and dearness allowance of Rs. 1,000 per month, 40% of which forms the part of the retirement benefits. He is also entitled to HRA of Rs. 2,000 p.m. He actually pays Rs. 2,000 p.m. as rent for a house in Delhi. Compute the taxable HRA.
Consider the following information:
Which of the following statements is/are true?
What an employee should check in his retirement benefit plan offered by the employer?
The premium on all other riders put together should not exceed _____ of the premium on the base policy
In a Mutual Fund Structure as per the latest guidelines the fund sponsor has to contribute:
The principle of _____________ ensures that an insured does not profit by insuring with multiple insurers
Mr. Ravi aged 28 years is a marketing professional who earns a salary of Rs. 50000 p.m. He is very concerned about his retirement expenses. For the same he has started saving Rs. 6000 p.m. regularly in a bank fixed deposit paying an interest of 9.5% p.a. since the age of 23.
At the age of 38, he is thinking of buying a house on his retirement which is 25 years away.
He has estimated that the price of the house at his retirement will be Rs. 4000000. Calculate the amount of retirement corpus accumulated by him and the extra savings he has to make at the age of 38 in order to purchase the house? (Inflation rate = 3% p.a.)
Mr. Chopra runs a Garment Factory, he is very concerned about his retirement and wants you to help him out in planning for it. His Current annual expenses are Rs. 12,00,000 which would be rising at an annual rate of 8% pre- retirement and 2% post retirement. His current age is 50 years and he wants to work till the age of 65. The expected life expectancy in his family is 75 years. Calculate the monthly contribution he must make till his retirement if the pre- retirement returns are 12% p.a. compounded monthly and post-retirement returns are 8% pea compounded annually.?
Vinod opened the PPF account on 19/11/2000, Calculate the amount he can avail as the first loan facility from the details below?
Manish has two house properties. Both are self occupied. The annual value of:
You buy a new computer for your business costing approximately Rs. 5,000. You expect a salvage value of Rs. 1000 selling parts when you dispose of it. Your business has upgraded its hardware every four years, so you think this is a more realistic estimate of useful life, since you are apt to dispose of the computer at that time. Calculate the amount of depreciation using straight line method?
An assessee was allowed deduction of unrealized rent to the extent of Rs. 40,000 in the past although the total unrealized rent was Rs. 60,000. He is able to recover from the tenant Rs.45,000 during the previous year on account of such unrealized rent. He shall be liable to tax to the extent of:
_________ is a key determinant indicating availability of banking services for the entire economy.
In the context of Organizational Models of banks in Wealth Management, a model in which Private Banking acts as a peripheral add-on to the core investment banking business is termed as:
Risk that can be eliminated through diversification is called ______ risk.
After the satisfaction of insured’s claim from the insurer, the insured should pursue in the recovering of rights from the 3rd party.
Which one of the following Sections of the Transfer of Property Act defines “Transfer of Property�
Under a Personal Accident policy Mr. Ajay has taken, what percentage of sum assured he can get if he losses his one eye and one limb in an accident and under which type of benefit?
The Motor Vehicle Insurance Policy has inbuilt cover for death/disability of driver/owner caused by accident during the use of the insured motor vehicle up to Rs. __________ in case of car/commercial vehicle and Rs. _________ in case of two wheelers.
Returns on a security held for 5 years by Praveen are:
Find the standard deviation of the security.
Mr. Shivam Sharma expects to receive Rs 25000 in net receipts each year for five year and to sell the property for Rs 350,000 at the end of the five-year period, if Mr. Sharma expects a 15% return, what would be the value of the property?
Intermediaries who are agents of investors and match buyers with sellers of securities are called
Spot Nifty is at 5000. One month Nifty call with strike price of Rs. 4800 is trading at Rs. 250 per call. An investor buys 100 Nifty calls. At expiry Nifty closes at 5500. Net profit / loss of the investor is Rs. ___.
A stock earns the following returns over a five year period:
What is the standard deviation of returns for the stock?
The following information regarding the equity shares of M/s V Ltd. is given
Calculate the EPS of M/s V Ltd. according to the traditional approach
Which of the following is a reasonable assumption to make about the understanding of a client on the Wealth planning Process?
Dhruv contributes Rs. 25,000 every year starting from the beginning of the 4th year from today till the begning of 12th year in the account that gives a ROI of 11.40% p.a. compounded half yearly. Calculate the Present Value of his contribution today.
Ankur Kalra is 33 years old finance professional. The house hold expenditure of Mr. Kalra is 20,000/- p.m. to maintain his current living standard. He assumes that his living standard will increase 1.5% annually until his retirement at 60. His life expectancy is 70 years. At retirement he needs 75% of his last year’s expenses. Inflation rate for the next 45 years is expected to be 4% p.a.
Calculate how much would Mr. Kalra require in the first year after his retirement, and how much he has to save at end of every year to accumulate this corpus, if the return on investment is 7% p.a.?
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?
Your client, a businessman has a house worth Rs. 2.1 crore and a farm house worth Rs. 85 lakh. His business is worth Rs. 10 crore as per last balance sheet. He has two other partners in the business having stakes of 24% each. He has two cars purchased at Rs. 40 lakh and Rs. 20 lakh, the latter being in personal account. The cars have depreciated/market value at Rs. 30 lakh and Rs. 8 lakh, respectively. His joint Demat account, wife being primary holder, has stocks worth Rs. 1.65 crore. The business has taken Keyman‟s insurance on his life of value Rs. 1.5 crore. He has himself insured his life for an assured sum of Rs. 1.5 crore. You evaluate your client’s estate in case of any exigency with his life as _____.
Amit an industrialist wants to buy a flat in a housing society presently costing Rs. 35,00,000/- after 6 years. The cost of the house is expected to increase by 15% pea for the first 3 years and by 10% in the remaining years. Amit wants to start a SIP with monthly contributions in Birla Front Line Equity Mutual Fund to pay for the down payment of the house which would be 25% of the house value at that time. You as a CWM expect that the fund would give ROI of 14% p.a. compounded monthly in the next 10 years. Please advise Amit the monthly SIP amount starting at the beginning of every month for the next 6 years to fulfill his goal of buying the Flat he desires.
X furnishes the following particulars for the compilation of his wealth-tax return for assessment year 2012-13.
Mentioned below is the information regarding three mutual funds - Reliance, TATA, SBI and the Market Index.
The Risk free return rate is 5%. Calculate the Jensen Measure of RELIANCE, TATA, & SBI Fund.
The list of managing body needs for be fixed with Registrar of Joint Stock companies
Mr. Sushil, is 35 years old and working as a physician in a private hospital. He will retire at the age of 60. He is saving Rs. 30,000/- p.a. at the end of every year for past 5 years and will continue to save the same up to his retirement @ 7% p.a. His annual expenditure is Rs. 3,00,000/-. Life expectancy of Mr. Sushil is 75 years. On retirement, rate of interest is expected to be 6%. Calculate on retirement how much he can spend per annum if he leaves Rs. 5,00,000/- as estate for next generation?
Mr.Rajesh ,35 years old sole business consultant of “Oriental Décor Importâ€California , USA. He arranges Indian Handicraft Products in India as per “Oriental Décor Import†orders. He earns 5% commission on goods purchased by “Oriental Décor Importâ€. The “Oriental Décor Import†has invited him in USA for inauguration of their 21 chain stores In USA and Europe and he has to expect to say long for providing Indian Handicraft Product Training to all staffs of the Company working in different chain stores. As a Chartered Wealth Manager he comes to you to plan his journey in such a manner so that he can get maximum tax benefits in the assessment Year 2010–11 from the residential status point of view. In the year 2008–09 was present in India only 80 days. What is the latest date when he can afford to leave India to get maximum tax benefits in the said assessment year?
R acquired a property by way of gift from his father in the previous year 1991-92 when its FMV was Rs. 3 lakh. The father had acquired the property in the previous year 1983-84 for Rs. 2 lakh. This property was introduced as capital contribution to a partnership firm in which R became a partner on 10/06/2011. The market value of the asset as on 10/06/2011 was 10 lakh, but it was recorded in the books of account of the firm at Rs. 8 lakh. Compute the capital gain chargeable in the hands of R.
Jaya is the owner of two residential houses. She sold one house on 23-12-2011 for Rs.12,50,000 which was purchased by her on 25-4-1979 for Rs.80,000. The market value of the land as on 1-4-1981 was Rs.98,000. Expenses on transfer were 1.5% of the sale price. The entire sale proceeds was utilized to construct the first and second floor on her second house which she completed by 15-3-2010. Compute the capital gain for the assessment year 2012-13. [CII-12-13: 852,11-12: 785, 10-11:711, 83-84: 116]
A person is said to be Cognate of another if the two of them are related by blood or adoption entirely or wholly through males.
Which of the following is an inferential data (i.e. data which may not be correctly obtained by simply asking a direct question)?
Given the following information:
What is the expected return and standard deviation of the portfolio if 50% of funds invested in each stock? What would be the impact if the correlation coefficient were 0.6 instead of 0.2?
Mr. Nitin, a trading and a clearing member, took proprietary position in August 2007 expiry contract. He bought 10000 units of SAIL@ Rs.140 and sold 8000 units @ Rs.143.50. The end of the day settlement price for August 2007 expiry contact is Rs.141. If the initial margin per unit of SAIL for August 2007 is Rs.42 per unit, then the total initial margin payable by Nitin would be_______
The correlation coefficient between returns on stock of M/s X Ltd and the market returns is 0.3. The variance of returns on M/s X Ltd. is 225(%)2 and that for the market returns is 100(%)2 . The risk-free rate of return is 5% and the market return is 15%. The last paid dividend is Rs. 2 and the current purchase price is Rs. 30. The growth rate for the company is 10%. The required rate of return on the security as per the Capital Asset Pricing Model is:
Vishal is working with Amex Ltd since October 1, 1997. He is entitled to a basic salary of Rs. 6,000 pm.Dearness Allowance is 40% of Basic Salary for retirement benefits. He retired from his job on December 1,2010 (4 months before the end of F.Y 2010-11) and shifted to his village. He is entitled to the following benefits at the time of retirement. Gratuity = Rs. 98,000. Pension from December 1, 2008 = Rs. 2,000 per month. Payment from recognized PF = Rs. 3,00,000. Encashment of earned leave for 150 days = Rs. 36,000. He was entitled to 40 days leave for every completed year of service. He got 50% of his pension commuted in lump sum w.e.f March 1, 2011 and received Rs. 1,20,000 as commuted pension. Vishal contributes Rs. 900 per month to RPF to which his employer contributes an equal amount. What will be the amount of un-commuted pension for Vishal that will form part of his total income for the A.Y. 2011-12?
Which of the following option illustrates an advantage of the probate process?
Ram purchased a house in Mumbai in March 2000 for Rs.3,50,000. In April,2011 he entered into an agreement to sell the property to Shyam for a consideration of Rs.19,75,000 and received earnest money of Rs.5,00,000. As per the terms of the agreement, the balance payment was to be made within 30 days of the agreement. If the intending purchaser does not make the payment within 30 days, the earnest money would be forfeited. As Shyam could not make the payment within the stipulated time the amount of Rs.5,00,000 was forfeited by Ram.
Which of the following statement is correct in respect of the above problem? [CII-12-13: 852,11-12: 785,10-11:711,84-85: 125]
In case of an individual and HUF cash in hand in excess of …………… shall be included in assets
The concept of indemnity is based on the key principle that policyholders should be prevented from
The income received by the approved superannuation fund on the investments made by the fund is
A will that can only be made by a soldiers in actual warfare ,or airmmen or mariners at sea is known as:
In case of yearly, half yearly or quarterly premium payments …………… days of grace.
What is the Relationship of Banker with the payee of a draft issued by the Bank?
Bijoy traced a missing person and was awarded a sum of Rs. 35,000. Although there was no stipulation to that effect, such receipt shall be:
An insured becomes entitled for getting No Claim Bonus only at the renewal of a policy after the expiry of the full duration of _________ months.
The interest payable for a housing loan outside India is not allowed as a deduction U/S 24 (1) while computing the income from house property?
Rs. 1.50 lakh settled on a trust for the benefit of Akash and Bina for life. They share the income in proportion of 3:2.Their ages on valuation date are 20 years and 16 years. The average annual income for the last three years on the valuation date is Rs. 15,000/-. Find out the value of life interest of Akash and Bina if the value of life interest of Re 1/- at the age of 20 years is 12.273 and at the age of 16 years is 12.534.
Vinod is projecting an income stream providing Rs. 2,000/- for first 3 months, Rs. 3,200 for next 2 months, Rs. 4,500 for next 1 month, Rs. 3,700 for next 6months and Rs. 800 for 2 months thereafter. Please calculate the Present Value of this cash stream if rate of interest is 9%
The expected return and standard deviations of stock A & B are:
Amit buys Rs.20,000 of Stock A and sells short Rs.10,000 of Stock B using all the Proceeds to buy more or Stock A. The correlation Between the two securities is .35. What are the expected return & standard deviation of Amit’s portfolio?
If you have deposited Rs.4000 with a company and the company wishes to prepay the deposit at the contracted rate of interest after a period of 3.5 years and offers you Rs.4985, what is the effective rate of interest if it is accounted half yearly?
The beta of stock of Akhil Computers Ltd., is 1.5 and is currently in equilibrium. The required return on the stock is 19% and the expected return on the market is 15%. Suddenly due to a change in economic conditions, the expected return on the market increases to 17%. Other things remaining the same what would be new required rate of return on the stock?
Compulsory maintenance of account is required u/s 44AA of IT, if the gross receipt/ total sales exceed _______
A borrower defaults on a secured loan of Rs. 50,000. The underlying security is worth Rs. 60,000. Which of the following is true? "
Find Beta of security X if expected market premium is 15%, risk free return is 7% and expected return of security X is 20%?
Under Motor Vehicles Insurance, liability only policy covers property damage up to Rs. _________, in case of private cars & commercial vehicles, and Rs. ________, in case of two wheelers, although Motor Vehicle Act requires a cover of only Rs. ________.
The main purpose of the guaranteed insurability rider benefit is to give the policyholder the right to
Find out the effective quarterly rate for 18% per annum compounded half yearly.
Ranbir deposits Rs. 80000 as a lump sum amount in a immediate annuity. He will receive annuity on a monthly basis for next one year. Determine the monthly amount he is entitled to receive. The rate of interest is 15%
Mr. Vivek Kalra deposits Rs.11,00,000 today in an investment that would pay after 6 years Rs. 1,00,000 per year for 5 years and Rs. 1,50,000 for the next 5 years. What would be the balance in the account after the last payment is made if the ROI is 18% per annum compounded annually.?
A person is on the verge of retirement. He has sufficient funds to meet his daily regular expenses and even he has sufficient insurance coverage. He owns a house property. His family consists of him and his wife only. As a Chartered Wealth manager, which insurance policy would you suggest him?
Which of the following is / are RBI conditions applicable for banks declaring dividends?
The difference between aggregate disbursements net of debt repayments and recovery of loans and revenue receipts and non debt capital receipts is called:
Total income for assessment year 2007-08 of an individual including long-term capital gain of Rs. 60,000 is Rs. 1,40,000. The tax on total income shall be:
The minimum service required for entitlement to payment of gratuity under the Act, in case of an employee leaving service by death or incapacitation is
If a stock GHI ltd pays an annual dividend of Rs. 5 and plans to follow this policy for ever, then what would be the ate of return that investor would realize given the current market price of stock is 100
Calculate the total maturity amount payable in a policy of Rs. 4,00,000/-, if the term of the policy was 17 years and bonus was Rs. 52 per thousand per annum and a final bonus of Rs. 125/- per thousand was payable?
Ram born in 1950 has a life expectancy at birth of 65 years. Sita his wife born in 1955 has a life expectancy at birth of 70 years. Assuming that the life expectancies have not changed. Ram is planning to buy an annuity to be paid to him or his wife till anyone of them is alive. Assuming Ram will retire on attaining age 58 i.e. in 2008, what should be the time period of the annuity?
How much should one deposit today in a bank account paying interest compounded quarterly if you wish to have Rs. 50000 at the end of 24 months, if the bank pays 8% annually?
Banks, savings and loan associations, mutual savings banks, and credit unions
A good wealth management plan must include an analysis of all of the following EXCEPT
Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called
______ holds that the exchange of currencies should be determined not by state institutions but by individuals in the market.
Where one can open an account under the Public Provident Fund Scheme, 1968?
Which of the following transaction /transactions is/are an example of the Layering Stage of Money Laundering?
Accrued Interest on loan for self occupied property is Rs.110000 till 31 March 2010. Loan was taken for construction on 31/07/2006 and construction completed on 03/04/10. Interest for the year 2010-11 is Rs 22000. Determine what interest shall be allowed u/s 24(b) for AY 2011-12
………………………arises by operation of law eg trust created under MWP Act
Given the following diversified mutual fund performance data, which fund has the best risk adjusted performance if the risk free rate of return is 5.7%
A Portfolio manager is holding the following portfolio:
The risk free rate of return is 6% and the portfolio’s required rate of return is 12.5%. The manager would like to sell all of his holdings in stock A and use the proceeds to purchase more shares of stock D. What would be the portfolio’s required rate of return following this change?
Ram purchased a house in Mumbai in March 2004 for Rs.12,50,000. In April, 2011 entered into an agreement to sell the property to Shyam for a consideration of Rs.19,75,000 and received earnest money of Rs.50,000. As per the terms of the agreement, the balance payment was to be made within 30 days of the agreement. If the intending purchaser does not make the payment within 30 days, the earnest money would be forfeited. As Shyam could not make the payment within the stipulated time the amount of Rs.50,000 was forfeited by Ram. Subsequently Ram sold the house in June,2012 for Rs. 21,30,000. He paid 2% brokerage on sale of the house. Calculate the capital gains chargeable to tax for the assessment year 2012-13. [CII-12-13: 852,11-12: 785,10-11:711,03-04:463]
Mr. Hitesh Shah has a portfolio with 23 different equities. The portfolio increased by 20% and has a beta of 1.50. Utilizing the Capital Asset Pricing Model, compute by what percent the market changed (round to nearest 0.5%) (Assume risk free rate of 5%)?
A portfolio consists of 50% of investment ‘R’ that earned 10%, 25% of investment ‘S’ that earned 6% and 25% of investment ‘T’ that earned 9%. Compute the weighted average return?
A hired a bicycle from B. The written contract contained a clause which read “Nothing in this agreement shall render the owner liable for any personal injuries to the rider of the machine hiredâ€. Owing to a defect in the brakes of the cycle, A met with an accident and got injured. Can A recover Damages?