AAFM Chartered Wealth Manager (CWM) Certification Level IIination CWM_LEVEL_2 Dumps in PDF

Free AAFM CWM_LEVEL_2 Real Questions (page: 18)

What is the present value of an annuity which pays Rs. 10,000 for 3 years at the end of each year, assuming ROI @7% per annum compounded annually?

  1. Rs. 28,080.18
  2. Rs. 26,243.16
  3. Rs. 34,400
  4. Rs. 27,243.54

Answer(s): A



By agreeing to service any assets that are packaged together in the securitization process a bank can

  1. Ensure the assets that are packaged and securitized remain in the package and are not sold off
  2. Choose the best loans to go through the securitization process
  3. Earn added fee income
  4. Liquidate any assets it chooses

Answer(s): C



The Markowitz model identifies the efficient set of portfolios, which offers the

  1. Highest return for any given level of risk or the lowest risk for any given level of return
  2. Least-risk portfolio for a conservative, middle-aged investor
  3. Long-run approach to wealth accumulation for a young investor
  4. Risk-free alternative for risk-averse investors

Answer(s): C



What is a method to evaluate a large volume of consumer loans quickly with minimum labour?

  1. Debt Scoring
  2. Credit Scoring
  3. Credit Process
  4. Debt Consolidation

Answer(s): B



The core of the ____________ is that even though stocks appear to be an attractive asset, they have high average returns and a low covariance with consumption growth investors appear very unwilling to hold them.

  1. Sunk Cost Fallacy
  2. Equity Premium Puzzle
  3. Present-biased Preferences
  4. Inter Temporal Consumption

Answer(s): B



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