Section A (1 Mark)

Mr. Naresh is working in a reputed company and earning Rs. 5,00,000/- p.a. and is now 50 years old. He has invested Rs. 2,50,000/- in an annuity which will pay him after 5 years a certain amount p.a. at the end of every year for 10 years. Rate of interest is 8% p.a. Calculate how much he will receive at the end of every year after 5 years?

Section A (1 Mark)

During “Financial Independence” life stage, typical asset allocation should be

Section B (2 Mark)

Mr.Dinesh is transferred to Delhi and is paid a shifting allowance of Rs.20000 by his employers out of which he spends Rs.18000 for shifting his family and personal effects. Which of the following is true?

Section B (2 Mark)

Customer relationship management applications dealing with the analysis of customer data to provide information for improving business performance best describes by which of the following?

Section A (1 Mark)

__________refers to responding to a positive action with another positive action, rewarding kind actions.

Section C (4 Mark)

Your company had the following balance sheet and income statement information for 2003:

The industry average inventory turnover is 5. You think you can change your inventory control system so as to cause your turnover to equal the industry average, and this change is expected to have no effect on either sales or cost of goods sold. The cash generated from reducing inventories will be used to buy tax-exempt securities which have a 7 percent rate of return. What will your profit margin be after the change in inventories is reflected in the income statement?

Section A (1 Mark)

investment plan pays Rs. 1 lac at the beginning of 10th year for 5 years and Rs. 2 lacs for next 5 years. If the rate of interest is 10% per annum. What will be the present value of this investment?

Section A (1 Mark)

The organizations make their special offer to the customers who will provide the highest profit margins, greatest response rate and __________.

Section B (2 Mark)

Mr. L Singh used machinery in his business. This is the only asset in the block. 20% of the usage is for personal purposes. The WDV of the block as on 31.3.2011 is —

Section B (2 Mark)

A hedge fund manager purchases 10 convertible bonds with a par value of $1,000, a coupon of 7.5%, and a market price of $900. The conversion ratio for the bonds is 20. The conversion ratio is based on the current price of the underlying stock, $45, and the current price of the convertible bond. The delta, or hedge ratio, for the bonds is 0.4.

Therefore, to hedge the equity exposure in the convertible bond, the hedge fund manager must short the following shares of underlying stock:

Section C (4 Mark)

Azhar deposits Rs. 12,500 in an account that pays a ROI of 20% p.a compounded annually on 5th. Of March 2010. Calculate the date on which the balance in his account would be Rs.35,338/-

Section B (2 Mark)

An employee who is not resident in the UK will be liable to UK income tax:

Section A (1 Mark)

A bank is considering making a loan to Neil Garg. Neil has bounced three cheques in the last year and already has Rs 1,00,000 on a credit card and an automobile loan with a large balance. What aspect of evaluating a consumer loan application is this fact concerned with?

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 A (1 Mark)

_____________ is defined as the transfer of services to private enterprise in US.

Section A (1 Mark)

Real estate property consists of:

Section B (2 Mark)

Withholding Tax Rates for payments made to Non-Residents are determined by the Finance Act passed by the Parliament for various years. The current rates for Royalities are:

Section A (1 Mark)

Depending on how questions are asked, ___________ can cause investors to communicate responses to questions about risk tolerance that are either unduly conservative or unduly aggressive.

Section A (1 Mark)

_______________ and _______________ mandates are two kinds of service level contracts

Section C (4 Mark)

Read the senario and answer to the question.

Which one of the following statements most accurately describes the risk exposure of the Shankers’ portfolio?

Section A (1 Mark)

Which portion of his property can a muslim normally be guest according to muslim personal law?

Section A (1 Mark)

Which of the following is true regarding the resistance level?

Section B (2 Mark)

Regular collateralized debt obligations (CDO) have been surpassed by:

Section C (4 Mark)

Read the senario and answer to the question.

Harish wants to know what amount is eligible for deductible u/s 24 of Income Tax for housing loan repayments in computation of his Income tax liability for AY 2010-11.

Section B (2 Mark)

An investor is considering the purchase of a small office building and, as part of his analysis, form the following given data calculate the appraised value of the property using the Income Approach.

Section A (1 Mark)

REITs offer all of these, except:

Section B (2 Mark)

Basic Idea of retirement benefit plan is

Section B (2 Mark)

Consider the single factor APT. Portfolio A has a beta of 0.2 and an expected return of 13%. Portfolio B has a beta of 0.4 and an expected return of 15%. The risk-free rate of return is 10%. If you wanted to take advantage of an arbitrage opportunity, you should take a short position in portfolio _________ and a long position in portfolio _________.

Section C (4 Mark)

OMG Petro Ltd produces and markets crude oil. The following are selected numbers from the financial statements for 1992 and 1993 (in millions).

The firm had capital expenditures of Rs950 million in 1992 and Rs1 billion in 1993. The working capital in 1991 was Rs190 million, and the total debt outstanding in 1991 was Rs5.75 billion. There were 305 million shares outstanding, trading at Rs21 per share.

Estimate the cash flows to equity in 1992 and 1993(in Rs Millions)

Section B (2 Mark)

Any income chargeable under the based “Salaries” is exempt from tax under Section 10(6)(viii), if it is received by any non resident individual as remuneration for services rendered in connection with his employment in a foreign ship where his total stay in India does not exceed a period days in that previous year.

Section C (4 Mark)

A share pays nil dividend and its current market price is Rs.100. The possible selling prices at the end of a year and the probabilities are:

What is the expected rate of return at the end of the year?

Section B (2 Mark)

Lucy purchased a rental house a few years ago for $100,000. Total depreciation to date is $35,000. In the current year, she sells the house for $155,000 and pays $10,000 selling expenses. Calculate Lucy's gain on the sale.

Section A (1 Mark)

A covered call position is equivalent to a

Section A (1 Mark)

The difference between a wagering contract and insurance contract is ___________.

Section B (2 Mark)

Gold trades at Rs.16000 per 10 gms in the spot market. Three-month gold futures trade at Rs.16150. One unit of trading is 1kg and the delivery unit for the gold futures contract on the NCDEX is 1 kg. A speculator who expects gold prices to rise in the near future buys 1 unit of gold futures. Two months later gold futures trade at Rs.15900 per 10 gms. He makes a profit/loss of ______________.

Section A (1 Mark)

A(n) __________________ guards against the losses in the value of a credit asset. It would pay off if the asset declines significantly in value or if it completely turns bad.

Section B (2 Mark)

The _________ is a plot of __________.

Section B (2 Mark)

PPF is a

Section B (2 Mark)

Withholding Tax Rates for payments made to Non-Residents are determined by the Finance Act passed by the Parliament for various years. The current rates for Technical Services are:

Section A (1 Mark)

Deduction under section 80-IC is allowed to the extent of:

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 B (2 Mark)

An investor is considering the purchase of a small office building and, as part of his analysis, form the following given data calculate the Net Operating Income (NOI).

Section A (1 Mark)

Statman (1977) argues that ________ is consistent with some investors' irrational preference for stocks with high cash dividends and with a tendency to hold losing positions too long.

Section B (2 Mark)

Which of the following statements is/are correct with respect for Resident Senior Citizen i.e. who is of an age of 60 years and above, but below 80 years?

Section B (2 Mark)

What are the two strategies that have the broadest mandate across financial, commodity, and futures markets?

Section A (1 Mark)

An appealing feature of options on futures contracts is that:

Section B (2 Mark)

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:

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 B (2 Mark)

Which of the following statements is / are correct?

Section A (1 Mark)

_____________is a percentage of the original or proposed loan to the value of a property.

Section A (1 Mark)

Monitoring and rebalancing a portfolio over time involves all of the following costs EXCEPT

Section C (4 Mark)

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.

Section A (1 Mark)

_________________ is a method to evaluate a large volume of consumer loans quickly with minimum labor. This method is a statistical model which predicts whether the consumer will repay the loan or not.

Section C (4 Mark)

Read the senario and answer to the question.

Calculate the tax liability of Mr. Neeraj for the A.Y.08–09 assuming that he has avail full deduction under section 80C

Section C (4 Mark)

To fulfil the Educational Qualification to be registered as an Investment Advisor under the SEBI Investment Advisor Regulations 2013, The applicant must:

Section C (4 Mark)

The Puri’s family includes a financially well-informed couple, both aged 34, and two children aged 4 and 6. They are financially sound, but were not in the market during the Indian Bull market of the 2003 to 2007 as many of their neighbors were. The couple’s total income, Rs. 12,00,000, which they do not expect to grow significantly in times to come

They have saved 15,00,000, which they hope will be the financial foundation from which they will send their children to college and retire comfortably.

Which of the following biases does the Puri Family suffer from:?

Section C (4 Mark)

As a CWM you are required to calculate the tax liability of an individual whose Taxable income is:

• $ 85650 in US dollars and he is a US citizen (single individual)

• $ 159000 in SGD and he is a citizen of Singapore

Section B (2 Mark)

Which one of the following statements is/are correct?

Section C (4 Mark)

Read the senario and answer to the question.

What is the Basic Liquidity Ratio for the couple? Is it sufficient considering Vinay’s circumstances?

Section C (4 Mark)

Monika has a investment portfolio of Rs. 100000, a floor of Rs. 75000, and a multiplier of 2. So the initial portfolio mix is 50000 in stocks and 50000 in bonds. If stock market falls by 20%, what should Monika do?

Section B (2 Mark)

If an investor determines that next year’s earnings estimate is Rs2.00 per share and the company subsequently falters, the investor may not readjust the Rs2.00 figure enough to reflect the change because he or she is “anchored” to the Rs2.00 figure. This is not limited to downside adjustments—the same phenomenon occurs when companies have upside surprises

Which of the following Biases have been exhibited by the investor?

Section A (1 Mark)

A well-diversified portfolio is defined as

Section B (2 Mark)

The Sachdeva family includes a financially well-informed couple, both aged thirty-two, and two children aged four and six. They are financially sound, but were not in the market during the bull market of the 2003 to 2007 as many of their neighbors were. The couple’s total income, Rs.12,00,000 which is not expected to grow significantly. They have saved Rs.15,00,000, which they hope will be the financial foundation from which they will send their children to college and retire comfortably. The Sachdeva’s suffer from:

Section A (1 Mark)

Which of the following is not one of the five core process according to Payne’s five-process model ?

Section B (2 Mark)

Which of the following statements is/are correct with respect to Mental Accounting?

Section C (4 Mark)

The following were P/E ratios for some Asian markets in February 1994, with relevant information on interest rates and economic growth:

Assuming the dividend payout ratio in each of these countries is 60%, estimate the P/E ratio in South Korea and Thailand, based upon stable growth. (Use a risk premium of 7.5% over the risk-free rate in each country.)

Section A (1 Mark)

Deduction under section 80C shall be allowed:

Section B (2 Mark)

Which of the following statements is/are False?

Section A (1 Mark)

Wealth Erosion can happen due to _______

Section A (1 Mark)

Mr. Dhir is now 50 years old. He has invested Rs. 1,50,000/- in an annuity which will pay him after 10 years a certain amount p.a. at the beginning of every year for 10 years. Rate of interest is 7% p.a. Calculate how much he will receive at the beginning of every year after 10 years?

Section A (1 Mark)

How many states operate lotteries to generate revenue in US?

Section A (1 Mark)

Which of the following statements least accurately describes a form of risk associated with investing in fixed income securities?

Section A (1 Mark)

The concept of indemnity is based on the key principle that policyholders should be prevented from

Section B (2 Mark)

As per Double Taxation Avoidance Agreement, the Dividends in UAE is charged at:

Section A (1 Mark)

Holistic advisory services which cater to specific client segments such as entrepreneurs, professionals are known as____________________.

Section A (1 Mark)

The tendency to seek and interpret information that confirms existing beliefs. Our conclusions are unduly biased by what we want to believe. Which of the following is most likely consistent with this bias?

Section A (1 Mark)

In order to remain competitive, non-core providers need to achieve the following:

Section B (2 Mark)

The favorable difference received by buyer/holder on the exercise/expiry date, between the final settlement price as and the strike price, will be recognized as ___________

Section B (2 Mark)

As per Double Taxation Avoidance Agreement, the Royalties in UK is charged at:

Section B (2 Mark)

Mr. X gives Rs. 200000 to Mrs. X as gift. She invests in a proprietary concern and incurs a loss of Rs. 40000

Section B (2 Mark)

A financial institution plans to issue a group of bonds backed by a pool of automobile loans. However, they fear that the default rate on the automobile loans will rise well above 4 percent of the portfolio – the projected default rate. The financial institution wants to lower the interest payments if the loan default rate rises too high. Which type of credit derivative contract would you most recommend for this situation?

Section B (2 Mark)

Payment of Gratuity Act 1972 is applicable to

Section A (1 Mark)

Which of the following income is not exempt under section 10-

Section A (1 Mark)

A type of lease where there is no payment schedule and penalty for a set period of lines.

Section A (1 Mark)

Which of the following is least indicative of the pyramid structure seen when individuals create portfolios?

Section A (1 Mark)

Following is not a head of income

Section A (1 Mark)

A bank is considering making a loan to Ram Kapoor. Ram has a gross salary per month of Rs40500 but has take-home pay of Rs27500 per month. What aspect of evaluating a consumer loan application is this fact most concerned with?

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 C (4 Mark)

Which of the following statements are correct?

Section A (1 Mark)

The potential loss for a writer of a naked call option on a stock is

Section C (4 Mark)

Read the senario and answer to the question.

During identification of new business opportunities, one of Harish’s friends Shekhar has offered him a business proposal. In this proposal a partnership firm consisting of two partners, Harish and Shekhar, shall take the franchise of a company which is a reputed brand in the field of pathology lab in which their investment and profit sharing ratio shall be equal.

Franchise rights shall be valid for 5 years and the project requires an upfront investment of Rs. 25 lakh for required infrastructure. The franchisee agreement has an option that the company can take over the franchisee after 5 years by charging depreciation @15% p.a. on straight line basis.

The projected profits from the firm are as follows:

Harish wants to know what IRR he will earn on his investment from this project ? (Please ignore taxes and assuming no additional investment is made during this five year period)

Section A (1 Mark)

The proposed Fair Tax would change the U.S. tax system and instead:

Section A (1 Mark)

The covariance of the market returns with the stocks returns is 0.007. The standard deviation of the market is 7% and standard deviation of stock’s return is 10%. What is the correlation coefficient between stocks and market returns?

Section B (2 Mark)

Mr. Rai has received a house under a will on death of his uncle in the financial year 1985-86. His uncle purchased the house on 1-4-1968 for Rs.7 lakh. Mr. Rai has sold this during the financial year 2011-12 for Rs.62 lakh. Calculate the taxable amount of capital gain if the fair market value of house as on 1-4-1981 is Rs.20,00,000/- CII-12-13: 852,11-12: 785,10-11:711]

Section B (2 Mark)

The expected market return is 16 percent. The risk-free rate of return is 7 percent, and BC Co. has a beta of 1.1. Their required rate of return is

Section B (2 Mark)

Information processing errors consist of

Section A (1 Mark)

____________represents people’s propensity to claim an irrational degree of credit for their successes.

Section B (2 Mark)

A bank recently loaned you Rs15,000 to buy a car. The loan is for five years (60 months) and is fully amortized. The nominal rate on the loan is 12 percent, and payments are made at the end of each month. What will be the remaining balance on the loan after you make the 30th payment?

Section A (1 Mark)

Tarun has Rs. 100000/- in a account and starts investing Rs. 7500/-per month at the beginning of the month. If the account pays 10% p.a interest compounded half yearly. What will be the accumulated amount in his account after 20 years.

Section B (2 Mark)

In a collateralized mortgage obligation (CMO) a tranche:

Section A (1 Mark)

Which of the following is an effective strategy in times of falling interest rates?

Section C (4 Mark)

At end of this year ICICI Ltd. will pay a dividend on its stock of Rs. 5 per share. The dividend is expected to remain same for next year. During third year dividend is expected to be Rs.6 from there on, the dividend is expected to grow at 5% per year indefinitely. Stocks with similar risk are currently priced to provide a 10% expected return. What is the intrinsic value of ICICI Ltd.

Section C (4 Mark)

Read the senario and answer to the question.

Raman’s company has made plans for the next year for a new project. It is estimated that the company will employ total assets of Rs. 900 lakh, 75% of the assets being financed by borrowed capital at an interest cost of 6% per year. The direct costs are estimated at Rs. 530 lakh. All other operating expenses are estimated at Rs. 95 lakh. The goods will be sold to customers at 150% of the direct costs. Income tax rate is assumed to be 30%. Calculate net profit margin and return on owners’ equity.

Section B (2 Mark)

In 2011-12, George has property income of £8,000 and net bank interest of £4,000. He claims the personal allowance of £7,475. What is the income tax borne for the year?

Section B (2 Mark)

On 1st January 2011, Mr. Dutt took a personal loan of Rs.1,00,000/- for a period of 3 years at an 21% rate of interest. The loan is to be on monthly EMI on monthly reducing balance method.

What about be interest and principal amount to be paid in October 2013?

Section B (2 Mark)

The risk-free return is 9 percent and the expected return on a market portfolio is 12 percent. If the required return on a stock is 14 percent, what is its beta?

Section B (2 Mark)

Which of the following statements with respect to Transfer Pricing is/are correct?

Section A (1 Mark)

Conventional theories presume that investors ____________ and behavioral finance presumes that they ____________.

Section A (1 Mark)

A trough is ________.

Section B (2 Mark)

If the currency of your country is appreciating, the result should be to ______ exports and to _______ imports.

Section A (1 Mark)

The trust which is empty at creation during life and tranfers the property into the trust at death is called ____________

Section B (2 Mark)

In 2011-12, an individual receives a net dividend of £648. The equivalent gross income is:

Section B (2 Mark)

Which of the following statements with respect to International Taxation Structure is/are correct?

Section B (2 Mark)

The tracking error of an optimized portfolio can be expressed in terms of the ____________ of the portfolio and thus reveal ____________.

Section A (1 Mark)

_______________ reveals that people often focus on short-term financial events to the detriment of their long-term needs.

Section A (1 Mark)

Which ONE of the following in not the requirement for managing customer?

Section B (2 Mark)

An approved superannuation fund must have a minimum of _______ trustees

Section A (1 Mark)

Hedge funds often seek to take advantage of market inefficiencies such as:

Section A (1 Mark)

The eligibility Criteria for Self Employed Professionals & Businessman for minimum age of the applicant in case of personal loan is:

Section B (2 Mark)

Financial Year 2012-13 shall be considered as

Section B (2 Mark)

Withholding Tax Rates for payments made to Non-Residents are determined by the Finance Act passed by the Parliament for various years. The current rates for Dividends are:

Section A (1 Mark)

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…..

Section A (1 Mark)

A business angel is best described in which one of the following statements?

Section B (2 Mark)

Actual Loss ratio is

Section A (1 Mark)

A forward contract differs from a futures contract in that:

Section C (4 Mark)

Read the senario and answer to the question.

Harish wants to go abroad on a family vacation tour in January next year. A tour operator is offering him a package in which he has to pay only Rs. 20,000 on 1st January, 2011 which is 10% upfront amount, while the remaining amount is to be repaid in 36 EMIs of Rs. 7,500 each, first EMI payable on 1st February, 2011. Harish wants to know the annual effective rate of interest which he may incur in subscribing to this offer.

Section A (1 Mark)

The most common type of interest rate swap is

Section C (4 Mark)

As a CWM you are required to calculate the tax liability of an individual whose Taxable income is:

• $ 1,22,300 in US dollars and he is a US citizen (Heads of the households)

• $ 310000 in SGD and he is a citizen of Singapore

Section C (4 Mark)

Ms. Deepika is a famous Bollywood actress having a busy and successful professional business venture in the name of ‘Millennium Production House” with her childhood friend Navin. Initially she received few small assignments. But after a documentary film, which was welcomed by people of Mumbai, she becomes quite successful. She wants to set aside today a capital sum to be liquidated over the next 10 years for the care of her aged mother living alone in MADARUAI with her sisters. The desired income stream for her mother as per her status is Rs. 2,40,000 p.a. beginning after one year and rising 5% p.a. each year thereafter. Deepika belives that the investment earnings on the fund will be 8% p.a.

In the last 8 years, there was no looking back in the business with 22 employees and around Rs. 1.25 crore of annual income, net of all expenses. She leads a very comfortable life as a “modern successful single lady”. She has already constructed a house valuing Rs. 3.75 crore and has a portfolio of assets which include precious metals like gold, silver etc. worth Rs. 1.25 crore, direct and indirect investment in equities (mutual funds) Rs. 2.75 crores, bank deposits and small savings scheme investments Rs. 0.75 crore.

You as a CWM® has been approached by her, for advice on retirement planning. She expects to work for another 10 years and after that wants to pursue her hobbies of traveling and photography and want to be active in social work. She has expressed desire to leave half of her estate in equal proportion to her two nephews and donate other half to charitable trust “Mother Care”.

Section A (1 Mark)

Which of the following act is done by the most dissatisfied customers?

Section A (1 Mark)

Long-term cash flow improvement may not be achieved by

Section A (1 Mark)

In reality, when risk and uncertainty or incomplete information about an alternative or high degree of complexity is introduced, people or organizations may be have somewhat different from rationality. This is called ___________.

Section B (2 Mark)

Consider these two investment strategies:

Strategy ___ is the dominant strategy because __________.

Section A (1 Mark)

Creation of an Estate Plan normally occurs during __________

Section B (2 Mark)

Non-Resident (NR) is __________on Indian Income and ___________on Foreign Income.

Section B (2 Mark)

Compulsory maintenance of account is required u/s 44AA of IT, if the gross receipt/ total sales exceed _______

Section C (4 Mark)

Mr. Bhatia, aged 43 is practicing as a Doctor at Nasik. His wife Mrs. Bhatia is a social worker. They reside in a flat they own along with their daughter Neena aged 9. Mr. Bhatia’s elder sister is residing in Canada whom he has not met since last 5 years. His another elder sister resides in USA whom he has not met since last 8 years. Mr. Bhatia will continue active practice upto the age of 75. Looking at the history of his family life expectancies, Mr. Bhatia believes he would survive upto 85. His gross monthly income currently is Rs. 1, 45,000. Their monthly expenses are Rs. 25,000/-(including Personal expenses Rs. 5000) and they save about Rs. 35,000/- every month. Mr. Bhatia has total assets of Rs. 38.25 lacs and total outstanding liability for Medical Equipment and car of Rs. 12.45 lacs, which gives Mr. Bhatia net worth of Rs. 25.80 lacs estimated as on March 2008. His current investments are as follows:

Mr. Bhatia is a moderate risk taker and minimizes his tax through various schemes. He has a minimal exposure to equity instruments, as substantial portion of his investments is locked in Debt instruments. But he is aware of the fact that capital growth without investing in direct equity or equity mutual funds is difficult. In the current scenario, the economy is positive, with a growth of more than 9% and hence equity will yield excellent returns.

Objectives:

1.Mr. Bhatia and his wife would like to start saving for their daughter Neena’s educational needs. They require Rs. 1,00,000 at her age of 15, 2 lacs when she is 16, and 8 lacs when she is 18 and 25 lacs when she is 21.

2.To provide Rs. 50 lacs for Neena’s wedding at the age of 25.

3.To provide for vacations with the family to US & Canada, Middle East and Europe.

4.To provide a retirement corpus for a period of 10 years

5.Purchase a new car worth Rs. 15 lacs in nest 6 months.

6.To buy a property worth Rs. 1 crore nearby of RML hospital.

Section A (1 Mark)

A type of trust in which assets are passed down to the grantors grandchildren not the grantors children

Section A (1 Mark)

In terms of the risk/return relationship

Section B (2 Mark)

Mrs. Sharma, a 40-year-old widow, has an 8-year-old son. Her current savings are not adequate to provide for her son’s post graduate studies, however she will be able to save for it by the time he finishes graduation i.e. when he is 20 years old. Mortality tables indicate that her life expectancy is another 30 years.

Which one of the following is true?

Section A (1 Mark)

Real estate investments can be categorized into:

Section B (2 Mark)

Ajay is considering to purchase a house which will bring rental income of Rs. 15,000/- p.m at the end of month. Ajay is looking for 12% returns and he is expecting to sell the property after 5 years for Rs. 6 lac. What price Ajay should pay for this property now?

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.

Section A (1 Mark)

Which of the following is not a broad category of Alpha drivers?

Section A (1 Mark)

____________refers to the tendency of people to think of currency in nominal, rather than real terms

Section A (1 Mark)

The strategies of convertible arbitrage, emerging markets, equity market neutral and fixed income arbitrage are categories of which alternative investments class?

Section C (4 Mark)

You purchased a call option for Rs3.45 seventeen days ago. The call has a strike price of Rs45 and the stock is now trading for Rs51. If you exercise the call today, what will be your holding period return? If you do not exercise the call today and it expires, what will be your holding period return?

Section A (1 Mark)

In US, how many states do not have a corporate income tax?

Section A (1 Mark)

If the deceased has two widows, four sons and two daughters then what is the share of each widow

Section A (1 Mark)

In case of self occupied property, higher deduction u/s24(b) for interest on loan for construction can be claimed if borrowing was made

Section A (1 Mark)

A financial contract that obligates one party to exchange a set of payments it owns for another set of payments owned by another party is called a

Section B (2 Mark)

As Per Article 12 Double Taxation Avoidance Agreement with US, _____per cent of the gross amount of the royalties or fees for included services as defined in this Article, where the payer of the royalties or fees is the Government of that Contracting State, a political sub-division or a public sector company.

Section B (2 Mark)

Narayan expects to receive Rs 25000 in net receipts each year for five year and to sell the property for Rs 350,000 at the end of the five-year period, if Narayan expects a 15% return, what would be the value of the property?

Section A (1 Mark)

Marketing relationships are:

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 B (2 Mark)

Amit has just received new information regarding his investment in PLC ltd. The new information appears to be in conflict with earlier forecast of what the stock price should be at this point. He is still willing to incorporate the new information into his forecast and to revise it accordingly.

Which behavioral heuristic is Amit displaying?

Section A (1 Mark)

Which of the following is the process of enabling personnel to deliver service in manner that is beneficial to both the organization’s customers and to itself?

Section A (1 Mark)

Which one of the following has not caused the huge growth in hedge funds and private equity?

Section A (1 Mark)

You buy a investment plan by investing Rs. 6000/- per month for first 12years and Rs. 11000/- per month for next 12 years. If the rate of interest is 15% per annum compounded monthly . How much amount would you have after 24 years?

Section A (1 Mark)

Deduction under section 80QQB is allowed in respect of royalty income to:

Section B (2 Mark)

The Motor Vehicle Insurance Policy has inbuilt cover for death/disability of driver/owner caused by accident during the use of the insured motor vehicle up to Rs. __________ in case of car/commercial vehicle and Rs. _________ in case of two wheelers.

Section B (2 Mark)

NRIs are granted a special benefit by way of an option of being taxed at concessional tax rate of ________ as regards "investment income" and _______ as regards "long term capital gains" arising from "specified assets.

Section C (4 Mark)

Suppose ABC Ltd. is trading at Rs 4500 in June. An investor, Mr. A, shorts Rs 4300 Put by selling a July Put for Rs. 24 while shorting an ABC Ltd. stock. The net credit received by Mr. A is Rs. 4500 + Rs. 24 = Rs. 4524.

What would be the Net Payoff of the Strategy?

• If ABC Ltd closes at 4053

• If ABC Ltd closes at 5025

Section B (2 Mark)

Which of the following statements with respect to US Taxation Structure is/are correct?

Section B (2 Mark)

Which one of the above statements is/are incorrect?

Section A (1 Mark)

The _______ is typically taken to be the risk-free rate.

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 A (1 Mark)

REIT Preferred Stock can offer lower total returns than common stock and have some liquidity issues as well.

Section B (2 Mark)

Interest on UK government securities is exempt from UK income tax if the recipient is not ___ in the UK.

Section A (1 Mark)

Supporting customers through the process of selecting, purchasing, and maintaining a product or service is known as:

Section A (1 Mark)

When markets are in equilibrium, the CML will be upward sloping

Section B (2 Mark)

Suppose you are working with two factor portfolios, Portfolio 1 and Portfolio 2. The portfolios have expected returns of 15% and 6%, respectively. Based on this information, what would be the expected return on well-diversified portfolio A, if A has a beta of 0.80 on the first factor and 0.50 on the second factor? The risk-free rate is 3%.

Section A (1 Mark)

All of the following are assumptions made by technical analysts except:

Section A (1 Mark)

The life-cycle theory of asset allocation proposes that as investors progress through life, their

Section B (2 Mark)

As per Double Taxation Avoidance Agreement, the Technical Fees in UAE is charged at:

Section A (1 Mark)

A(n)______________________ loan is a short- or medium-term loan repayable in two or more consecutive payments, usually monthly or quarterly.

Section C (4 Mark)

Read the senario and answer to the question.

What is the monthly extra saving at beginning required to be done by Raman during his remaining working period to accumulate his required retirement corpus?

Section A (1 Mark)

Mr. X’s minor daughter earned Rs. 50000 from his special talent. This income will be clubbed with

Section C (4 Mark)

A 14% semiannual-pay coupon bond has six years to maturity. The bond is currently trading at par. Using a 25 basis point change in yield, the effective duration of the bond is closest to:

Section C (4 Mark)

Read the senario and answer to the question.

Calculate the retirement corpus required by Raman to generate his post-retirement expenses.

Section C (4 Mark)

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?

Section A (1 Mark)

A general theoretical perspective in social psychology concerned with the issue of social perception. is known as_____________

Section A (1 Mark)

An Agreement entered into between the Sellor and Buyer for transfer of the right / ownership of the property on an outright sale/purchase is known as __________.

Section A (1 Mark)

Which of the following types of income is received by individuals without deduction of basic rate tax?

Section B (2 Mark)

As per Double Taxation Avoidance Agreement, the Interest Rate in Mauritius is charged at:

Section C (4 Mark)

Management has recently announced that expected dividends for the next three years will be as follows:

For the subsequent years, management expects the dividend to grow at 5% annually. If the risk-free rate is 4.30%, the return on the market is 10.30% and the firm’s beta is 1.40. What is the maximum price that you should pay for this stock?

Section A (1 Mark)

Deduction under section 80C to 80U is allowed from:

Section B (2 Mark)

Calculate the treynor measure, Sharpe measure and Jensen measure from the following data:

The mean risk free rate was 6 percent.