AAFM CWM_LEVEL_2 Chartered Wealth Manager (CWM) Certification Level II Examination Online Training
AAFM CWM_LEVEL_2 Online Training
The questions for CWM_LEVEL_2 were last updated at Dec 05,2025.
- Exam Code: CWM_LEVEL_2
- Exam Name: Chartered Wealth Manager (CWM) Certification Level II Examination
- Certification Provider: AAFM
- Latest update: Dec 05,2025
Section A (1 Mark)
A(n) _________________________ guarantees the swap parties a specific rate of return on their credit asset. Bank A may agree to pay the total return on the loan to Bank B plus any appreciation in the market value of the loan. In return Bank A will often get LIBOR plus a fixed spread plus any depreciation in the value of the loan.
- A . credit option
- B . Total return Swap
- C . credit linked note
- D . credit swap
Section A (1 Mark)
Mansi has deposited Rs. 7,00,000/- in a bank today @ ROI of 10 % per annum compounded monthly.
She wants to know that if she withdraws this money in monthly installments at the END of the month for 7 years, then how much will be the each installment amount?
- A . 10788.23
- B . 13012.23
- C . 11,620.82
- D . 12012.23
Section A (1 Mark)
The critical variable in the determination of the success of the active portfolio is ________.
- A . Alpha/systematic risk
- B . Alpha/nonsystematic risk
- C . Gamma/systematic risk
- D . Gamma/nonsystematic risk
Section A (1 Mark)
An example of a highly cyclical industry is ________.
- A . The automobile industry
- B . The tobacco industry
- C . The food industry
- D . A and B
Section B (2 Mark)
Which of the following statements concerning index funds and actively managed funds is true?
- A . Their performance is about equal.
- B . They tend to have an inverse relationship.
- C . Actively managed funds tend to outperform index funds.
- D . Index funds tend to outperform actively managed funds.
Section A (1 Mark)
How many states operate lotteries to generate revenue in US?
- A . 39
- B . 40
- C . 48
- D . All 50 states operate lotteries to generate revenue.
Section C (4 Mark)
Read the senario and answer to the question.
If Mrs. Deepika, a conservative investor, has Rs. 50, lakhs today that she could invest for the next three months in a three month bank CD or in a stock. The bank CD offers a guaranteed return 6 % over the three-month period. Alternatively she thinks the price of the stock will rise by 5% over the next months. She is confused in taking the decision.
Guide her in trade off between return and risk so that she makes a decision in choosing investments?
- A . As the return on stock is higher in next 3 months she should decide to invest in stock.
- B . The future price of the stock is uncertain, her return from investing in this stock is also uncertain. The return could be less than 5% and might be even negative. But in Bank CD return is guaranteed. So as a conservative investor she should decide of invest in the Bank CD.
- C . For making a balance trade off between return and risk she should invest 50% in each investment
- D . Option B and C
Section A (1 Mark)
A cognitive heuristic in which decisions are made based on an initial ‘anchor__________
- A . Anchoring and Adjustment Bias
- B . Ambiguity Bias
- C . Confirmation bias
- D . Overconfidence Bias
Section A (1 Mark)
Manoj owns five hundred shares of ABC Ltd. Around budget time, he gets uncomfortable with the price movements.
Which of the following will give him the hedge he desires (assuming that one futures contract = 100 shares)?
- A . Buy 5 ABC Ltd. futures contracts
- B . Sell 5 ABC Ltd. futures contracts
- C . Sell 10 ABC Ltd. futures contracts
- D . Buy 10 ABC Ltd futures contracts
Section C (4 Mark)
Read the senario and answer to the question.
You have reviewed the investments of Nimita for the purview of retirement. You advise that a balance be restored from risk perspective and accordingly Rs. 15 lakh be shifted to a Debt MF scheme. You advise to further start SIPs immediately in the ratio of 60:40 in the newly started debt MF scheme and the existing Equity MF scheme for the next 21 years to accumulate a corpus so that the same sustains for the next 25 years if invested in an investment instrument yielding 7.50%.
What approximate amount of SIPs should be made in Debt and Equity MF schemes?
- A . Rs. 58,000 in Debt MF scheme & Rs. 39,000 in Equity MF scheme
- B . Rs. 55,400 in Debt MF scheme & Rs. 37,000 in Equity MF scheme
- C . Rs. 60,000 in Debt MF scheme & Rs. 40,000 in Equity MF scheme
- D . Rs. 42,000 in Debt MF scheme & Rs. 28,000 in Equity MF scheme
Latest CWM_LEVEL_2 Dumps Valid Version with 1259 Q&As
Latest And Valid Q&A | Instant Download | Once Fail, Full Refund
