Online Access Free GLO_CWM_LVL_1 Exam Questions

The holding period return on a stock was 30%. Its ending price was Rs.26 and its cash dividend was Rs.1.50.
Its beginning price must have been __________.

• A.Rs.86.67
• B.Rs. 91.67
• C.Rs.21.15
• D.Rs.20.00

You own 3 scripts with their market value at

Calculate the CAGR of portfolio.

• A.11.16%
• B.10.26%
• C.1.64%
• D.5%

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.8.09% and 12.60%
• B.12.60% and 0.809%
• C.12.60% and 8.09%
• D.11.67% and 8.75%

______ holds that the exchange of currencies should be determined not by state institutions but by individuals in the market.

• A.Social democratic view
• B.Liberal view
• C.Classical view
• D.Neo classical view

Which of the following is false with respect to internal rate of return?

• A.The internal rate of return (IRR) is a capital budgeting method used by firms to decide whether they should make long-term investments.
• B.IRR is defined as any discount rate that results in a positive net present value (present value of cash flows- initial investment) of zero of a series of cash flows.
• C.The IRR is the annualized effective compounded return rate which can be earned on the invested capital, i.e. the yield on the investment.
• D.In general, if the IRR is greater than the project's cost of capital or hurdle rate, the project will not be accepted at any cost.