Free AAFM CWM_LEVEL_2 Exam Questions

Become AAFM Certified with updated CWM_LEVEL_2 exam questions and correct answers

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Total 1265 Questions | Updated On: Feb 17, 2025

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Question 1

Section A (1 Mark)

Conflict of interest should be discussed in ________

A : ed Analysis

B : alysis of Financial issues

C : rms of Engagement

D : l of the above

Answer: C

Question 2

Section A (1 Mark)

Which of the following statement is correct?

A : doctrine of adhesion states that you can bargain or ask insurer to change the terms of the insurance contract as per your needs.

B : ile applying for life insurance, it becomes your duty to disclose your past illnesses to the insurer, according principle of utmost good faith

C : ile applying for life insurance, it becomes your duty to disclose your past illnesses to the insurer, according principle of insurable interest

D : ile applying for life insurance, it becomes your duty to disclose your past illnesses to the insurer, according principle of subrogation

Answer: B

Question 3

Section B (2 Mark)

The price of Sunder Ltd. is currently Rs. 40. The dividend next year is expected to be Rs. 4. Required return on the stock is 12%. Find the expected growth rate under the constant growth model.

A : 3%

B : 4%

C : 2%

D : 5%

Answer: C

Question 4

Section A (1 Mark)

Independent Individualist has __________ risk tolerance

A : w

B : ry High

C : derate

D : gh

Answer: C

Question 5

Section B (2 Mark)

A bond has the following terms:

If you expect the bond to be called at the end of the year, what would be the maximum price you should pay for the bond if comparable yields are 7 percent?

A : 1012.35

B : 1024.39

C : 1028.04

D : 1016.19

Answer: C

Page: 1 / 253

Total 1265 Questions | Updated On: Feb 17, 2025

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