The risk free return of Security A is 8%. In addition to it, you expect that the return on market would be 14%. The expected return of Security A with beta of 0.70 is ________.
Once the child reaches the vesting age, i.e. the age when the life assurance commences, he or she can claim cash option i.e. he can opt to receive the premium amount paid so far under the policy in case the policy is discontinued. This is possible under:
No society shall be dissolved unless …………………of the member shall have expressed a will for dissolution by their other
Which of the following measure is most widely used as an indicator of inflation?
Scholarship received by a student was Rs. 2,000 per month. He spends Rs. 15,000 for meeting the cost of education during the year. The treatment for the balance amount Rs. 9,000 is:
A country has an “absolute advantage” in two products with respect to another country. Can it gain by trading with the other country?
Vishwajeet wishes to have a lump sum Retirement Fund of Rs. 25,00,000/- in 30 years time. Assuming that he can get 12% returns per annum, compounded annually, what amount he should save every year to reach his target?
Security A has a standard deviation of 23% and the market has a standard deviation of 18%. The correlation coefficient r between Security A and the market is 0.80. What is the % of the change in Security A can be explained by changes in the market?
Calculate the premium for a policy of Rs. 10 lacs, if on an average out of 50000 persons aged 39,572 people die every year
A testator sometimes make two wills one relating to his property in his native country and other relating to his property in some foreign country this type of will is called
Which of the following costs best describes the cost of foregone income that results from making an economic decision to use funds to purchase a piece of equipment?
Ms. Shweta wants to achieve the goal of higher education of her daughter after 15 years. She estimates that the funds required would be 30 lacs at then costs. She wants to invest monthly for this goal. You as a Wealth Manager suggest an asset allocation of 80% in Equity and 20% in Debt for 14 years and shifting the entire amount to liquid funds in the last year where the expected returns would be 6% p.a. If the returns in equity and debt funds are 14% and 8.50% respectively calculate the amount that needs to be invested in Equity and Debt Each Month.
In case of self occupied property, higher deduction u/s24(b) for interest on loan for construction can be claimed if borrowing was made
Lokesh purchased a flat on 1-4-1996 for Rs. 10,00,000/-. He sells the same flat on 1-10-2006 for Rs. 25,00,000/-.As a CWM® calculate the Indexed Cost of Acquisition on which capital gain would be calculated. (The CII of year 1995-96 is 281, for year 1996-97 is 305, for year 2005-06 is 497 and for year 2006-07 is 519).
"To be sure to receive same day credit on a Saturday, NEFT instruction has to be given by _______."
Mr. Sahil has two daughters and is in receipt of education allowance of Rs 200pm for each of them. What would be the taxable allowance in the hands of Mr. Sahil for the full FY.
Which of the following is an inferential data (i.e. data which may not be correctly obtained by simply asking a direct question)?
Once the client accepts the proposal to prepare a wealth plan what is the next thing done by a wealth manager?
X Ltd. has failed to remit the tax deducted at source from annual rent of Rs. 6,60,000 paid to Mr. A for its office building. Said rent is —
Often burdened with loan and generally both of the spouses work to earn their living. Under which category this type of family falls?
A bank that handles affairs of another bank which has no legal standing in the jurisdiction is called
Solvency ratio is usually __________ in the case of young couples as compared to senior citizens
Michael estimates opportunity cost of investment to be 10.5% compounded annually. Which of the following is the best proposal?
Vishal is working with Amex Ltd since October 1, 1997. He is entitled to a basic salary of Rs. 6,000 pm.Dearness Allowance is 40% of Basic Salary for retirement benefits. He retired from his job on December 1,2010 (4 months before the end of F.Y 2010-11) and shifted to his village. He is entitled to the following benefits at the time of retirement. Gratuity = Rs. 98,000. Pension from December 1, 2008 = Rs. 2,000 per month. Payment from recognized PF = Rs. 3,00,000. Encashment of earned leave for 150 days = Rs. 36,000. He was entitled to 40 days leave for every completed year of service. He got 50% of his pension commuted in lump sum w.e.f March 1, 2011 and received Rs. 1,20,000 as commuted pension. Vishal contributes Rs. 900 per month to RPF to which his employer contributes an equal amount. What will be the amount of un-commuted pension for Vishal that will form part of his total income for the A.Y. 2011-12?
Mr. Aakash Jain has invested Rs. 85,000/- @ 6% p.a. in a bank deposit on 15th May 2007. After 10 years of investment rate of interest changes to 8 % p.a. computed half yearly. Further after 5 years rate of interest again changes to 7% p.a. compounded quarterly. After further 3 years rate of interest again changes to Rs. 7% pa compounded monthly. What will Mr. Jain get after 23 years (14th May 2030) assuming the date of commencement is now?
Mr. Neeraj Gupta wants to withdraw Rs. 50,000 per quarter form an account after 3 years for 6 years. How much should he deposit in this account today if the ROI is 12% p.a. compounded quarterly.?
A Portfolio manager is holding the following portfolio:
The risk free rate of return is 6% and the portfolio’s required rate of return is 12.5%. The manager would like to sell all of his holdings in stock A and use the proceeds to purchase more shares of stock D. What would be the portfolio’s required rate of return following this change?
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?
You are considering an investment with the following cash flows. Your required return is 8%, you generally require a payback of 3 years and a discounted payback of 4 years. If your objective is to maximize your wealth, should you take this investment?
How much amount should be invested by Mr. Batra today to get a maturity value of Rs. 90,368.50 after 6 years, if available ROI is 10% and compounding is Quarterly for first 2 years, Half Yearly for next 2 years and Monthly for last 2 years?
Sudesh Haldia is employed at Delhi as Store Manager in one of the Retail Companies. The particulars of his salary for the previous year 2006-07 are as under:
The actual rent paid by him is Rs. 2,000 p.m. for an accommodation at Noida till 31-12-2006.From 1-1-2007 the rent was increased to Rs. 4000 p.m. Compute the taxable HRA?
Given the following information:
What is the expected return and standard deviation of the portfolio if 50% of funds invested in each stock? What would be the impact if the correlation coefficient were 0.6 instead of 0.2?
Dhruv contributes Rs. 25,000 every year starting from the beginning of the 4th year from today till the begning of 12th year in the account that gives a ROI of 11.40% p.a. compounded half yearly. Calculate the Present Value of his contribution today.
Mr. Sachdeva is working as a regional head in a Pharmaceutical Company in New Delhi. He has a annual income of Rs. 10,00,000. His current expenses are Rs. 5,00,000 and he will be retiring in next ten years . 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 another apartment located in NCR . 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 Mr. Sachdeva 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 to buy the apartment.
From the following information of assets assets and liabilities, the taxable wealth for:
Rs. 1.50 lakh settled on a trust for the benefit of Akash and Bina for life. They share the income in proportion of 3:2.Their ages on valuation date are 20 years and 16 years. The average annual income for the last three years on the valuation date is Rs. 15,000/-. Find out the value of life interest of Akash and Bina if the value of life interest of Re 1/- at the age of 20 years is 12.273 and at the age of 16 years is 12.534.
Ms. Sonali Briganza is 22 years old. She is currently earning a salary of Rs.5,00,000/- per annum and saves 20% of her salary every year. If her salary increases by 10% every year and she is able to get a return of 11% p.a. compounded annually throughout her investment horizon what would be the corpus of funds available at her age 58.?
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.
A bond with a face value of Rs. 1000, returns Rs. 80 in year 1, Rs. 80 in year 2 and Rs. 1080 in year 3. What is the duration of the bond in years?
If after the partition of an HUF 2 members became partners in 3 firms on behalf of their respective HUFs and they also become partners in a fourth firm. The funds were obtained by means of loans from the other 3 firms. The share incomes of the members from the fourth firm were assessable as their individual income only.
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?
Which of the following is/are the key issues in retirement planning of self employed/ business class?
A fraud is discovered with respect to an loan that has turned NPA. When is the earliest that it can be treated as a doubtful asset?
Dividend received by a shareholder from an Indian company the whole of whose income is agricultural income shall be treated as:
In case of yearly, half yearly or quarterly premium payments …………… days of grace.
If any person has escaped assessment for any assessment year in respect of wealth tax no action shall be taken after the expiry of………
Under the efficient market hypothesis, which of the following term best describes the movement of stock prices?
In ULIP plans, the returns are dependent on in which the investments are done by the insurance company
Determination of monthly income & expenditure of client & his spouse can be done with the following steps. Arrange them in a logical order?
What an employee should check in his retirement benefit plan offered by the employer?
The minimum service required for entitlement to payment of gratuity under the Act, in case of an employee leaving service by death or incapacitation is
Mr. Patel has analyzed a stock for a one-year holding period. The stock is currently quoting at Rs 80/- and is paying no dividends. There is a 50-50 chance that the stock may quote Rs 90 or Rs 110 by year-end. What is the expected return on the stock?
Movement through phases of the business cycle is initiated by shifts in aggregate demand which create fluctuations in GDP. Which combination of the following statement would be the most significant contributor to the upward shift in aggregate demand?
Mr. Bakshi has invested Rs. 25,000/- @ 5% p.a. in a bank deposit. After 5 years rate of interest changes 6% p.a. computed half yearly. After further period of 2 years rate again changes to 7% p.a. compounded quarterly. After further 2 years rate again changes to Rs. 8% pa compounded monthly. What will he get after 10 years from now ?
Arvind Ltd. currently EPS is Rs.5. Its return on equity (ROE) is 25% and it retains 60% of its earning. Stocks of similar risk are priced to return 18%. What is the intrinsic value of Arvind Ltd’s Stock?
Find out the effective quarterly rate for 18% per annum compounded half yearly.
Balance on current account + balance of capital account + balance on reserves account is equal to ___________
If you have deposited Rs.4000 with a company and the company wishes to prepay the deposit at the contracted rate of interest after a period of 3.5 years and offers you Rs.4985, what is the effective rate of interest if it is accounted half yearly?
What is the minimum number of persons who must subscribe to the memorandum of association?
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?
The employer had purchased a car for Rs. 3,00,000 which was being used for official purposes. After 2 year 6 months of its use, the car is sold to R, the employee, for Rs. 1,20,000. The value of this perquisite shall be
Suppose there is Portfolio “P” available for investment in the market which has a correlation with the market of 0.70.
What portion of the risk of the portfolio can be eliminated through diversification?
Calculate the Paid up Value ( PV) under a policy with the following particulars
The relevant banking ombudsman for filing a complain regarding credit card with central processing is the one under whose jurisdiction __________________?
(CII for 1992-1993=223 and CII for 2011-2012 =785)
Calculate the LTCG in both cases?
Saptarshi acquired shares of G Ltd. on 15.12.98 for Rs. 5 lacs which were sold on 14.6.11 for Rs. 19 lacs.
Expenses on transfer of shares Rs. 40,000. He invests ` 8 lacs in the bonds of Rural Electrification. Corporation Ltd. on 16.10.2011. Compute capital gain for the assessment year 2012-13.
Which of the following is a reasonable assumption to make about the understanding of a client on the Wealth planning Process?
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
Mr.Rajesh ,35 years old sole business consultant of “Oriental Décor Import”California , USA. He arranges Indian Handicraft Products in India as per “Oriental Décor Import” orders. He earns 5% commission on goods purchased by “Oriental Décor Import”. The “Oriental Décor Import” has invited him in USA for inauguration of their 21 chain stores In USA and Europe and he has to expect to say long for providing Indian Handicraft Product Training to all staffs of the Company working in different chain stores. As a Chartered Wealth Manager he comes to you to plan his journey in such a manner so that he can get maximum tax benefits in the assessment Year 2010–11 from the residential status point of view. In the year 2008–09 was present in India only 80 days. What is the latest date when he can afford to leave India to get maximum tax benefits in the said assessment year?
Compute Gross Total income and amount of loss allowed to be carried forward to next year:
A rate of interest of 10% semi-annual compounded quarterly would be equal to -------------------- % per annum compounded annually.
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?
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?
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?
Mr. Amit Jain has bought a house today which cost him Rs. 50 lacs by taking a loan of 30lacs for 15 years at 11% per annum compounded monthly. He currently has 10 lacs of financial assets and plans to save Rs. 3.25 lacs every year at the beginning of the year for the next 5 years. All his investments are expected to grow at a ROI of 15%per annum compounded quarterly. What will be the net worth of Mr. Amit after 5 years if the value of the house after 5 years is expected to be 75 lacs.?
Kapil is employed by SIDBI. He receives the following emoluments/facilities during 2006-07: Basic Salary Rs.1,40,000 DA (forming part of salary) Rs.9,000 Sale of computer to him by employer sale price Rs.20,000 (Cost of computer Rs. 2,00,000 used by employee for 3 years and 9 months) Rent free accommodation, the F.R.V. of which is Rs. 24,000 p.a. His taxable income for the assessment year 2007-08 shall be:
Vinod is projecting an income stream providing Rs. 2,000/- for first 3 months, Rs. 3,200 for next 2 months, Rs. 4,500 for next 1 month, Rs. 3,700 for next 6months and Rs. 800 for 2 months thereafter. Please calculate the Present Value of this cash stream if rate of interest is 9%
Saurabh contributes Rs. 10,000 every year starting from the end of the 5th year from today till the end of 12th year in the account that gives a ROI of 7.75% p.a. compounded half yearly. Calculate the Present Value of his contribution today.
Mr. Pramod Jain (age 40 years) has life interest in a Trust property. The annual income from Trust property for last three years is as under:
The Trust has spent Rs. 5,000/- per year for collection of the income. The value of life interest of Re 1/- at the age of 40 is Rs. 10.093/-. The value of the property on the valuation date is Rs. 5 lakh. Find the value of life interest.
Commutation of pension up to a limit of _______________ is tax exempt in case the gratuity is also received
The Portfolio consists of two securities, X and Y in the ratio of 70:30. Given that
What is the portfolio risk?
Which of the following is / are RBI conditions applicable for banks declaring dividends?
Pure premium is Rs. 5000. Expenses are 20% of the gross (office) premium. Office premium is
You are given the following set of data on security XYZ:
Calculate the expected return on security XYZ?
Under a Personal Accident policy Mr. Ajay has taken, what percentage of sum assured he can get if he losses his one eye and one limb in an accident and under which type of benefit?
Calculate current liability from the following information.
Current ratio is 1.5 and current assets are worth Rs.250
The assessed is charged to income-tax in the assessment year following the previous year:
"A borrower defaults on a secured loan of Rs. 50,000. The underlying security is worth Rs. 60,000. Which of the following is true? "
A good wealth management plan must include an analysis of all of the following EXCEPT
When Government spends more than what it earns, the difference is called...............
Any property inherited by a female Hindu from her husband or from her father in law, in the absence of any son or daughter of the deceased shall go to…..
Wills which are not valid in India except in case of privileged wills or in case of Mahomadans are called as:
Difference between coparceners & member is that coparcener can demand partition of an HUF
If a female dies without leaving any issue them property inherited from her father or mother the property will devolve upon
A kind of lease in business organisations wherein the lesssor and lessee agree to a payment schedule (normally some months) have no payment and penalty
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TESTED 26 Apr 2024
