Section C (4 Mark)
You as a Chartered Wealth Manager are approached by a client who is depositing some amount in an account that pays a ROI of 12% p.a compounded monthly. She also has an option of investing in another account that pays ROI 12.76% p.a. compounded annually. She wants to know which of these is a better choice.
Section C (4 Mark)
In 2011-12, Lily (who is resident and ordinarily resident in the UK for the year) earns a gross salary from her UK employment of £45,000. PAYE (Pay as you Earn)of £7,600 is deducted from this income.
She owns a holiday home in France and receives rents of £2,250 for the year. This is the net figure after withholding tax of 25% has been deducted.
Her income tax payable for the year is:
Section C (4 Mark)
Company A is financed with 90 percent debt, whereas Company B, which has the same amount of total assets, is financed entirely with equity. Both companies have a marginal tax rate of 35 percent. Which of the following statements is most correct?
Section C (4 Mark)
Belstate reported net income of Rs221 million in 1993 on revenues of Rs8298 million. It paid out 31% of its earnings as dividends, a payout ratio that is expected to remain level from 1994 to 1998, during which period earnings growth is expected to be 13.5%. After 1998, earnings growth is expected to decline to 6%, and the dividend payout ratio is expected to increase to 60%. The beta is 1.15 and this figure is expected to remain unchanged. The treasury bill rate is 7%.
Estimate the price/sales ratio for Walgreens, assuming its profit margin remains unchanged at 1993 levels.
Section B (2 Mark)
Which of the following statements with respect to Transfer Pricing is/are correct?
Section C (4 Mark)
Read the senario and answer to the question.
Ms. Deepika is interested in investments in foreign markets. Her brother is working in one of reputed American company in India and that is offering him some shares under ESOP scheme. This company is not listed in India. It is listed in New York Stock Exchange. Ms. Deepika is asking her manager how this transaction will took place for her brother?
Section A (1 Mark)
An investor will take as large a position as possible when an equilibrium price relationship is violated. This is an example of _________.
Section C (4 Mark)
What is the portfolios standard deviation if you put 25% of your money into stock A which has a standard deviation of 15% and rest into stocks B which has a standard deviation of 10%. The correlation coefficient between the returns of the stocks is .75.
Section A (1 Mark)
Short-term to medium-term loans repayable in two or more consecutive payments are known as:
Section C (4 Mark)
Read the senario and answer to the question.
Sajan wants to cover for the expenses of his family without compromising their present lifestyle till the expected life time of Jennifer in case of his untimely death. He consumes 8% of monthly expenses exclusively on self. You advise him that the child plan covers a different goal. Assuming the cover proceeds are invested in a Balanced MF scheme, he should supplement his cover by taking a term insurance for _________ immediately to cover such future expenses. (Please ignore taxes and charges, if applicable, in regular withdrawals from Balanced MF scheme to meet proposed monthly expenses).
Section C (4 Mark)
Mr. Shyam has a portfolio consisting of two stocks A & B. Stock A has a standard deviation of 5 % while stock B has a standard deviation of 15%. Stock A comprises 40% of the portfolio and Stock B consists of 60%. If the correlation of returns of A & B is .5, the variance of return on the portfolio is _________.
Section A (1 Mark)
In the Balance sheet of a firm, the debt equity ratio is 2:1.The amount of long term sources is Rs.12 lac. What is the amount of tangible net worth of the firm?
Section B (2 Mark)
Mr. Aggarwal is working in a reputed company and earning Rs. 4,50,000/- p.a. and is now 55 years old. He has invested Rs. 2,00,000/- in an annuity which will pay him after 5 years a certain amount p.a. at the beginning of every year for 10 years. Rate of interest is 8% p.a. Calculate how much he will receive at the beginning of every year after 5 years?
Section A (1 Mark)
If a married couple (or civil partners) receive joint income, the amount of that income will normally be divided equally between them for tax purposes. True or False?
Section B (2 Mark)
In 2011-12, an individual receives net building society interest of £792. The equivalent gross income is:
Section A (1 Mark)
For a “single income family” priority is on
Section B (2 Mark)
Which one of the above statements is/are correct?
Section C (4 Mark)
Read the senario and answer to the question.
If the interest on a sum of amount is compounded annually at the rate of 14% per annum for 3 years, what is the effective continuously compounding rate of interest?
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?
Section B (2 Mark)
Ramesh living in Kolkata is a trustee for Brijesh living in Mumbai, Ramesh remits trust funds to Brijesh by bills drawn by a person of high creditworthiness in favor of the trustee as such and payable at Mumbai. The bills later got dishonored. Is Ramesh bound to make good the loss?
Section A (1 Mark)
Which of the following is not a derivative transaction?
Section A (1 Mark)
Commodity exchanges enable producers and consumer to hedge their _______ given the uncertainty of the future.
Section B (2 Mark)
Behavioral finance argues that ____________.
Section B (2 Mark)
Which of the following statements regarding a buy and hold strategy are true?
Section A (1 Mark)
Gift received is not taxable in hands of
Section A (1 Mark)
__________ is the symptom of poor listening.
Section A (1 Mark)
Loans to individuals and families to finance the purchase of new homes are known as:
Section A (1 Mark)
The minimum annual income for availing Auto Loan is:
Section A (1 Mark)
A swap that involves the exchange of one set of interest payments for another set of interest payments is called a(n)
Section A (1 Mark)
Which one of the following statements is false?
Section A (1 Mark)
Active portfolio management consists of __________.
Section B (2 Mark)
Which one of the above statements is/are incorrect?
Section A (1 Mark)
Vineet invests Rs. 5000/- per month at the beginning of the month for 10 years in Recurring Deposit account that pays 8.5% p.a interest compounded quarterly. What will be the accumulated amount in his account.
Section B (2 Mark)
Nomination in gratuity can be done in favor of
Section C (4 Mark)
Which of the following statements is/are correct?
Section A (1 Mark)
The covariance of market’s returns and stock returns is 0.005. The standard deviation of market’s return is 5%. What is the stock’s beta?
Section C (4 Mark)
Sunil has an investment portfolio of Rs.100000; the initial portfolio mix is Rs.50000 in stocks, Rs.30000 bonds and Rs.20000 in bank. If market goes up by 10% and the value of bonds decreases by 10%, what should Sunil do under the constant mix policy?
Section B (2 Mark)
A bond has a market value of Rs100,000 and a duration of 9.42. What is the price value of a basis point?
Section A (1 Mark)
_______________ is defined as the total amount of taxes paid as a percentage of a person's income.
Section B (2 Mark)
The breakdown of commodity future returns over the past 30 days for 2 upcoming oil future contracts is given below:
What is the roll return for the period 15th September to 15th October for the contracts maturing in November and February?
Section A (1 Mark)
Limited growth prospects are indicated by
Section A (1 Mark)
Which of the following is an advantage of a credit scoring model?
Section A (1 Mark)
__________ is a tangible company asset that can (and should) be inventoried and managed.
Section A (1 Mark)
Notice of loss should be given to the insurer within ________days of the event of loss.
Section B (2 Mark)
In a collateralized mortgage obligation (CMO) a tranche:
Section A (1 Mark)
The profits of a controlled foreign company which are apportioned to a UK company are charged to corporation tax at the UK company's average rate of tax.
Section A (1 Mark)
Bank Overdraft loan is an example of:
Section B (2 Mark)
In order to determine the residential status of an NRI returning to India for permanent settlement, for the year of return, besides the stay not exceeding 181 days an additional condition is applicable that of stay not totalling to____________ days or more in relevant year if his stay in earlier ___________ years totaled to 365 days or more.
Section B (2 Mark)
An approved superannuation fund must have a minimum of _______ trustees
Section A (1 Mark)
Quicker attention and resolution of complaints lead to ________
TESTED 16 Jul 2025