# AAFM glo-cwm-lvl-1 practice test

## Chartered Wealth Manager (CWM) Global Examination Exam

##### Question 1

The probability distribution of the rate of return on ABC stock is given below:

What is the standard deviation of return?
A. 11.40%
B. 12.90%
C. 10.50%
D. 13.50%

B
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##### Question 2

A portfolio manager is considering buying Rs. 1,00,000 worth of Treasury bills for Rs. 96,211 versus
Rs. 100,000 worth of commercial paper for Rs. 95,897. Both securities will mature in nine months.
How much additional return will the commercial paper generate over the Treasury bills?

• A. 0.45%
• B. 0.27% 322/323 Questions & Answers PDF P-
• C. 0.35%
• D. 0.21%

A

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##### Question 3

Smt. Rajalakshmi owns a house property at Adyar in Chennai. The municipal value of the property is
Rs. 5,00,000, fair rent is Rs. 4,20,000 and standard rent is Rs. 4,80,000. The property was let-out for
Rs. 50,000 p.m. up to December 2010. Thereafter, the tenant vacated the property and Smt.
Rajalakshmi used the house for self-occupation. Rent for the months of November and December
2010 could not be realized in spite of the owner's efforts. She paid municipal Texas @12% during the
year. She had paid interest of Rs.25,000 during the year for amount borrowed for repairs for the
house property. Compute her income from house property for the A.Y. 2012-13.

• A. Rs 281500
• B. Rs 275500
• C. Rs 269000
• D. Rs 265400

C

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##### Question 4

Calculate the death claim amount if the assured dies in the 25th year of the policy. Money back
policy with SA of Rs. 50000. Term is 25 years. Survival benefits of 10% each paid at the end of 5th ,
10th, 15th, and 20th years. Accrued bonus of Rs. 500 per thousand of SA.Interim bonus of Rs. 75 per
1000 of SA.

• A. 50000
• B. 57500
• C. 100000
• D. 107500

D

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##### Question 5

Shruti has invested Rs. 12000 for 8 years at the rate of interest of 6%. What amount she will get after
8 years if amount is compounding annually for the first 5 years and semi annually for the last 3 years?
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• A. 19803.43
• B. 19174.92
• C. 18976.24
• D. 19203.46

B

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##### Question 6

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%

• A. 24465.92
• B. 25817.12
• C. 24,513.72
• D. 23478.68

C

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##### Question 7

X furnishes the following particulars for the compilation of his wealth-tax return for assessment year
2012-13.

• A. Rs. 2 lakh
• B. Rs. 9.50 lakh
• C. Rs. 17 lakh
• D. Rs. 9 lakh

A

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##### Question 8

Mr. Bose runs his Handicrafts business. His net proceeds after deducting both the business expenses
and living expenses are Rs. 6,00,000 p.a, which will increase at the rate of 5%. He is a bachelor and
dont intend to start any family in future either. Since he dont have any family obligations, he wants
to sell off his business after ten years and buy a home in foothills of Himachal.
He expects to sell the business for a good amount and put 40% of the proceeds in buying the house
and setting up a retirement corpus with the rest of amount to pay off his post retirement expenses.
He is philanthropic by nature and thus want to save the net revenues from his business to form a
charitable hospital for poor people living in Himachal. His current living expenses are Rs. 4,00,000 p.a
which will increase in line with inflation. Inflation rate is 3% and interest rate prevailing is 6%.
As a CWM you are required to calculate:

• A. Business: Rs 4,61,82,645, House: Rs 2,77,09,587, Hospital: Rs 97,17,000
• B. Business: Rs 3,07,88,430, House: Rs 1,23,15,372, Hospital: Rs 97,17,000
• C. Business: Rs 2,77,09,587, House: Rs 2,77,09,587, Hospital: Rs 80,97,653
• D. Business: Rs 3,69,46,116, House: Rs 1,84,73,058, Hospital: Rs 97,17,000 320/323 Questions & Answers PDF P-

B

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##### Question 9

Vinod joined on 01/01/90 in ABC Ltd. and retired on 01/01/2007.Employee paid leave encashment of
Rs. 4,00,000/-. His last drawn salary is Rs. 25000/-. His last 10 months average salary is 23500/-. He
availed 150 days leave during the service. What will be his taxable leave salary amount?

• A. 4,00,000
• B. 2,35,000
• C. 2,82,000
• D. 1,65,000

D

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##### Question 10

From the following information of assets assets and liabilities, the taxable wealth for:

• A. Rs 1,10,00,000 & Rs 40,00,000 respectively 319/323 Questions & Answers PDF P-
• B. Rs 1,00,00,000 & Rs 40,00,000 respectively
• C. Rs 1,10,00,000 & Rs 50,00,000 respectively
• D. Rs 70,00,000 & Rs 40,00,000 respectively