The following parameters are available for two mutual funds:
Calculate Sharpe measure?
An investor investing Rs. 7,282.58 on March 1, 2012 and getting Rs. 10,000 back on February 28, 2017 would have a yield to maturity (YTM) of _____%.
Under the efficient market hypothesis, which of the following term best describes the movement of stock prices?
Indian Inherihence Law permits a married woman to acquire jewellery to worth of?
To take care of the risks during the foreign travel, Overseas Travel Insurance policy cover provides various other covers, in addition to __________ insurance, such as baggage cover, loss of transport cover, personal accident cover, personal legal liability cover etc.
If a scheme has 45 cr units issued and has a Face Value of Rs. 10 and NAV is at 11.13, unit capital (Rs. Cr) would be equal to
Consider the following information:
Which of the following statements is/are true?
Which of the following is/are not the statutory objectives of Financial Service Authority(FSA) of UK?
If the assessed lets out his house to his employer, which in turn allots the same to him as rent free accommodation? How would such house property will be treated as:
Performance measurement by benchmarking normally refers to comparing performance of a fund to
Ankur Kalra is 33 years old finance professional. The house hold expenditure of Mr. Kalra is 20,000/- p.m. to maintain his current living standard. He assumes that his living standard will increase 1.5% annually until his retirement at 60. His life expectancy is 70 years. At retirement he needs 75% of his last year’s expenses. Inflation rate for the next 45 years is expected to be 4% p.a.
Calculate how much would Mr. Kalra require in the first year after his retirement, and how much he has to save at end of every year to accumulate this corpus, if the return on investment is 7% p.a.?
Shri Ganjarwala Charitable Trust (Regd.) submits the particulars of its income/outgoing for the previous year 2009-2010 as below:
The trust spends Rs 2,77,500 during the previous year 2009-2010 for charitable purposes. In respect of Rs 5,20,000, it has exercised its option to spend it within the permissible time-limit in the year of receipt or in the year, immediately following the year of receipt.
The trust spends Rs 2,00,000 during the previous year 2009-2010 and Rs 1,00,000 during the previous year 2010-2011.
Compute the tax payable on the income of the trust.
A country has an “absolute advantage” in two products with respect to another country. Can it gain by trading with the other country?
Consider the following information for three mutual funds
Risk free return is 7%. Calculate Treynor measure?
From the data given below, calculate the premium of a policy of Rs. 5 lac, for all the mentioned age groups?
"During the PY 2009-10 a Poonawala Charitable Trust earned an income of Rs. 7 lakh out of which Rs.5 lakh was received during the PY 2009-10 and the balance Rs. 2 lakh was received during the PY 2011-2012.In order to claim full exemption of Rs. 7 lakh in the PY 2009-10:
Mr. Shikar wants to invest his savings in an account that pays an interest rate of 9.25% p.a. compounded annually at different ages of his son whose current age is 4 years. Please calculate for him the Future Value of these investments when his son turns 18.
Find the Human Life Value for a person who is 30 years old.He wishes to retire at age of 60. Interest rate is expected to be 12%. He spends Rs. 60000 on his personal clothing and Rs. 40,000 on his conveyance. He has paid Rs. 65000 as tax for the year. His gross annual income is Rs. 5 lakhs.
If there is a loss under the head Income from House property, can it be adjusted against other income under any other Head?
"This is the "crowding out" theory: Increased government borrowing crowds household and business investment out of limited savings, driving up _______, but not raising total demand." Fill in the blank.
You want to take a trip overseas which costs Rs. 10 lacs. The cost is expected to remain unchanged in nominal terms. You can save annually Rs. 50000 to fulfill the desire. How long will you have to wait if your savings earn an interest rate of 12%?
A property has 120 rooms and each room has a monthly rent of Rs.750. The occupancy rate throughout the year is 80% and maintenance expenses per year works out to be Rs.3,00,000. Capitalization rate is 12%. Calculate the value of the property?
Mr. Ravi aged 28 years is a marketing professional who earns a salary of Rs. 50000 p.m. He is very concerned about his retirement expenses. For the same he has started saving Rs. 6000 p.m. regularly in a bank fixed deposit paying an interest of 9.5% p.a. since the age of 23.
At the age of 38, he is thinking of buying a house on his retirement which is 25 years away.
He has estimated that the price of the house at his retirement will be Rs. 4000000. Calculate the amount of retirement corpus accumulated by him and the extra savings he has to make at the age of 38 in order to purchase the house? (Inflation rate = 3% p.a.)
How much should one deposit today in a bank account paying interest compounded quarterly if you wish to have Rs. 50000 at the end of 24 months, if the bank pays 8% annually?
Stock A & B are positively correlated with a correlation co efficient of .75. When stock A moves up by 12%, how will stock B perform?
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?
Sudhir has invested Rs. 60,000, 30% of which is invested in Company A, which has an expected rate of return of 15%, and 70% of which is invested in Company B, with an expected return of 12%. What is the return on Sudhir’s portfolio?
Omar wants to make a gift of Rs. 10000 in today’s terms to his parents at the end of each of next 10 years. If the annual rate of return is 8% and inflation is 3%, what is the value of funds he must have in hand today to meet this need for the 10 year period?
Compulsory audit of account is required u/s 44AB of IT, if the total sales/ turnover exceed _______
A zero coupon bond of Rs 10,000 has a term to maturity of seven years and a market yield of 9 percent at the time of issue. What is the issue price? What is the duration of the bond? What is the modified duration of the bond?
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 doctor has taken a professional indemnity Policy on 01/06/2003 and has been continuously renewing it. In August, 2006 he operated on an infant child. But that operation failed. The parent of child filed a law suit against doctor in Sept, 2006. Which of the following statement is true in respect of the claim?
Yogesh Jain is a Chartered Accountant by profession and a very disciplined investor he has started investing from today in an account Rs. 1,00,000 every year (beginning of year) and plans to increase his contribution by 10% every year. If the ROI he gets is 15% per annum compounded half yearly calculate the corpus he would be able to accumulate in 25 years.?
Mr. Malhotra and Mrs.Malhotra aged 50 and 45 years respectively, both have a life expectancy of 35 years.
You have following information
Calculate the adequate insurance required based on need based approach.
From the following information of assets assets and liabilities, the taxable wealth for:
The expected return and standard deviations of stock A & B are:
Amit buys Rs.20,000 of Stock A and sells short Rs.10,000 of Stock B using all the Proceeds to buy more or Stock A. The correlation Between the two securities is .35. What are the expected return & standard deviation of Amit’s portfolio?
If a typical market basket of goods and services cost Rs 120 in 1975, the base year, and Rs 180 in 1985, the price index in 1985 would be__________
Ram deposits Rs. 12,500 in an account that pays a ROI of 20% pea compounded annually on 5th. Of March 2010. Calculate the date on which the balance in his account would be Rs.35,338/-.
What is the exemption criteria U/S 10(10) (ii) of the IT Act, 1961 for any gratuity received by a seasonal employee?
The relevant banking ombudsman for filing a complain regarding credit card with central processing is the one under whose jurisdiction __________________?
From the following data on mutual funds, Calculate the Sharpe Ratio.
Risk free return is 8%.
Mr. Subhash Bansal, a marketing manager is employed with IMFB limited. He took an advance of Rs. 1,20,000 against the salary of Rs. 30,000 per month in the month of March 2007. The gross salary of Mr. Adhikari for the assessment year 2007-08 shall be:
Mr. Raja Ram is working as a regional head in a Pharmaceutical Company. He has a annual income of Rs. 10,00,000. He will be retiring in next ten years. His current expenses are Rs. 5,00,000. The inflation rate for the foreseeable future is expected to be 5%. He assumes that his post retirement expenses will be 70% of his last year expenses of his service and they will increase at inflation rate and paid at the beginning of each year. On his retirement He plans to leave his current rented apartment and shift into a spacious and airy bungalow located on the suburbs of the city (his long cherished dream). The current price of the bungalow is Rs. 24 lakh which is estimated to increase in line with inflation rate. A ten year government security paper fetches 10% interest rate, which will remain constant for the forthcoming period. He is in good health and expects to live for twenty years after retirement.
As a CWM® you are required to calculate the amount he needs to save at the end of ten years on an annual basis so that he can pay his post retirement expenses as well as buy his dream house.
You are considering investing in following bond:
Your income tax rate is 34 percent and your capital gains tax is effectively 10 percent. Capital gains taxes are paid at the time of maturity on the difference between the purchase price and par value. What is your approximate post-tax yield to maturity on this bond?
Difference between coparceners & member is that coparcener can demand partition of an HUF
A mortgage where the mortgagor delivers possession and binds himself to deliver possession of the mortgaged property to the mortgagee is called?
The approach to global financial system which criticizes the modern financial system of promoting inequality between state players is called:
Roger deposits Rs. 10,00,000 in a bank account on 1st March 2005 and another Rs. 5,00,000 on 1st March 2011. He wants to withdraw all of this money with interest on 1st March 2015. If the account pays ROI of 11% P.A. compounded quarterly what amount can he withdraw from this account?
Dinesh took a housing loan of Rs. 25,00,000/- for 15 years in 2010 at a ROI of 11.75% per annum compounded monthly. Calculate the total interest and principle paid by him in the 2014 and 2016.
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B)
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What is the present value of the following cash flows, if the Interest rate is 8%?
Balance on current account + balance of capital account + balance on reserves account is equal to ___________
Manjeet, aged 33 years, is having a policy of Rs. 1 Lac sum assured and is paying premium of Rs. 1,800/- for the last 10 years. The cash surrender value of this policy is at the end of previous year was Rs. 20,000. It is estimated that by this year end, the cash surrender value of this policy would be Rs. 22,900. New term insurance of sum assured of Rs. 80,000 costs Rs. 300/- per annum today as per Manjeet’s age. If rate of interest is 6% then please advise Manjeet if it is better to continue this policy or to discontinue it?
An investment having market value of Rs. 100 lakhs in the beginning of 2007, a Rs. 200 lakhs value at the end of 2007, and a Rs. 100 lakhs value at the at the end of 2008. Calculate the arithmetic return and time-weighted return?
If a Rs. 100 par value preferred stock pays an annual dividend of Rs. 5 and comparable yields are 10 percent, the price of this preferred stock will be
Dinesh has opened his PPF account on 19/11/1999, Calculate the amount he can avail as the first withdrawal facility from the details below?
The returns on Stock A and Stock B have a correlation coefficient of –1. When the price of Stock A appreciates by 12%, how will Stock B’s price perform?
As a CWM® you recommended Mr. Raj Malhotra to put his money in Asset A offering 15% annual return with a standard deviation of 10%, and balance funds in asset B offering a 9% annual return with a standard deviation of 8%. Assume the coefficient of correlation between the returns on assets A and B is 0.50. Calculate the expected return after 1 year and standard deviation of Mr. Raj Malhotra’s portfolio
A Treasury bill pays a 6% rate of return. A risk averse investor __________ invest in a risky portfolio that pays 12% with a probability of 40% or 2% with a probability of 60% because __________.
What is the minimum number of persons who must subscribe to the memorandum of association?
Calculate the Net worth of Mr. Surinder Nath with the following financial details as:
Jignesh is 23 years old and plans to retire at 60. His life expectancy is 70 years. You being his CWM® estimate that his client will require Rs. 40,000/- in the first month after retirement. Inflation rate is 5% p.a. and the rate of return is 7% p.a. Currently Jignesh has investment of Rs. 50,000/- @ 7% rate of interest. What will be the extra savings per month at begin required in order to achieve this?
A Family consists of karta, his wife four sons and their wires and children and its income is Rs. 1000000 if by family arrangement income yield property is settled on karta his wife and sons & daughter in law than tax liability would be
Compulsory audit of account is required u/s 44AB of IT, if the total sales/ turnover exceed _______
All stock market indexes are most accurately characterized by which of the following statements about the degree to which they co-vary together?
If POA in respect of in moveable property of value more than ………………….it must be registered
Which one of the following sections of the Transfer of Property Act, defines ’Notice’
Suppose X and Y are Father and Son respectively ,so when Y was a minor X advanced Rs 10,000 to him.
After Y becoming major X obtains a bond for Rs 20000 ,which is much larger than the original amount due from Y,by using his parental influence.The contract stands voidable because the consent is caused by:
Once the client accepts the proposal to prepare a wealth plan what is the next thing done by a wealth manager?
An investment required an initial cash outlay of Rs. 15,000/- and yield cash flows over the next 5 years. The cash flows generated are:
You are required to calculate the payback period:
As a CWM you are considering the following bond for inclusion in the fixed income portfolio of your client:
What will be the duration of this bond? and What will be the effect of the changes on the duration of the bond if the coupon rate is 6% rather than 9%?
What is the future value of Rs. 5000 at the end of 5 years at 8% compounded annually?
Ram born in 1950 has a life expectancy at birth of 65 years. Sita his wife born in 1955 has a life expectancy at birth of 70 years. Assuming that the life expectancies have not changed. Ram is planning to buy an annuity to be paid to him or his wife till anyone of them is alive. Assuming Ram will retire on attaining age 58 i.e. in 2008, what should be the time period of the annuity?
"Tier 1 in the Basel framework includes each of the following, except ______."
In the context of Organizational Models of banks in Wealth Management, a model in which Private Banking acts as a peripheral add-on to the core investment banking business is termed as:
Modern “Asset Allocation” is based upon the model developed by Harry Markowitz. Which of the following statement is/are correctly identified with this Model?
When Government adjusts its economic policy through the Central Budget, it is exercising_________
In addition to the contribution employer has to pay ______________% of wages as administration charges.
If any expenditure is incurred by an Indian company wholly and exclusively for the purpose of amalgamation or demerger, the said expenditure is
A client has a minor child she is concerned about what might happen if she was to die while the child was still young and unable to sensibly handle a sizeable in heritance one solution could be to draft her will so that the child receives the asset once reaching age 21 this is an example of
Suresh a 30 years old person has joined ABHG on 1/07/2006. His monthly salary (net salary) after deduction is payable Rs. 20500.His monthly expenses details are as follows:
Assume that Suresh has taken his flat on rent from 01/07/2006. On 01 /07/2006 he has cash in hand Rs. 2450. What will be his cash in hand on 31/03/2007.
During last five years, Mr. Saxena owned securities that gave the following annual rate of return:
Which is the preferable security as per Geometric mean annual rate of return?
Total income for assessment year 2007-08 of an individual including long-term capital gain of Rs. 60,000 is Rs. 1,40,000. The tax on total income shall be:
What is the minimum number of members required, to form a society under section 20 of the Societies Registration Act, 1860?
If the slope of the Security Market Line is zero, which of the following is/are true?
For claiming exemption u/s 54G, the assessed shall acquire the new asset within:
Arun started a 20-year term insurance policy. Once established, when, if at all, is the insurer next entitled to ask him for proof of continuing good health?
A copy of the rules & regulations of the society, certified to be correct copy by not less than_____________ of the members of the governing body shall be filled with the MOA
In case of yearly, half yearly or quarterly premium payments …………… days of grace.
Which of the following is not true in respect of the conditions essential for taxing income under the head income from House Property?
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TESTED 21 May 2024
