Free AAFM CWM_LEVEL_1 Exam Questions

Become AAFM Certified with updated CWM_LEVEL_1 exam questions and correct answers

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Total 138 Questions | Updated On: Jan 10, 2025

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Question 1

Mr. Tiwari is the sole income earner in the family. Mrs. Tiwari is a homemaker. They are aged 40 and 36

respectively Life expectancy for both of them is another 40 years. They have no children. Other

information you have is: Current investment portfolio Rs. 20 lakhs, Estimated final expenses Rs. 1 lakh,

present annual expenses are of Rs. 4 lakhs (including Rs. 1 lakh of Mr. Tiwari's personal expenses), Mr.

Tiwari's post tax income in hand is Rs. 3.5 lakhs. Assume a post tax and post inflation rate is 4%.

Calculate the insurance requirement under the Needs Based Method?

A : . 43 Lakhs

B : . 42 Lakhs

C : . 62 Lakhs

D : . 51 Lakhs

Answer: D

Question 2

What are the advantages of 100% book building?

A : rketing of issue to wholesale bidders work out cheaper

B : ue can be completed in single stage

C : me lag between pricing and listing is less

D : l of the above

Answer: D

Question 3

For claiming exemption u/s 546, the assessee shall acquire the new asset within

A : 2 years from the date of transfer

B : 3 years from the date of transfer

C : year before or 2 years after the date of transfer

D : year before or 3 years from the date of transfer

Answer: C

Question 4

According to the dividend-growth model, the valuation of common stock depends on:

A : and II

B : and Ill

C : and Ill

D : l of the above

Answer: A

Question 5

Statement I: Financial risk is associated with a firm's sources of financing.

Statement II: The use of financial leverage is the source of financial risk

A : atement I is correct.

B : atement II is correct

C : th statements are correct.

D : th statements are incorrect.

Answer: B

Page: 1 / 28

Total 138 Questions | Updated On: Jan 10, 2025

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