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.
Answer: D
Section A (1 Mark)
_____________allow investors to increase diversification in direct real estate holdings by investing in groups of real estate projects.
A . Lease / Tenancy Agreement
B . Aggregation Vehicles
C . High and Best Use of Property
D . Leveraged Equity Position
Answer: B
Section B (2 Mark)
There are three stocks, A, B, and
C. You can either invest in these stocks or short sell them. There are three possible states of nature for economic growth in the upcoming year; economic growth may be strong, moderate, or weak.
The returns for the upcoming year on stocks A, B, and C for each of these states of nature are given below:
If you invested in an equally weighted portfolio of stocks A and B, your portfolio return would be ___________ if economic growth were moderate.
A . 3.00%
B . 14.50%
C . 15.50%
D . 16.00%
Answer: D
Section B (2 Mark)
The following parameters are available for two mutual funds:
Calculate Treynor’s performance index for Fund A & Fund B respectively
A . 8, 1.66
B . 10, 3.33
C . 9, 2.50
D . 18, 4.25
Answer: B
Section B (2 Mark)
As per article 12 Double Taxation Avoidance Agreement with Singapore, Royalties and fees for technical services arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. However, such royalties and fees for technical services may also be taxed in the Contracting State in which they arise and according to the laws of that Contracting State, but if the recipient is the beneficial owner of the royalties or fees for technical services, the tax so charged shall not exceed__________ per cent.
A . 10
B . 15
C . 20
D . 12
Answer: A
Section B (2 Mark)
Which of the following statements is / are correct?
A . I, II and III
B . I, III and IV
C . II, III and IV
D . All of the above
Answer: D
Section C (4 Mark)
The returns of 2 shares are as follows
Calculate the covariance of returns.
A . 220.32
B . C420.11
C . 162.08
D . 270.36
Answer: C
Section B (2 Mark)
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%?
A . 8 years, Increase
B . 7.33 years, Decrease
C . 6.031 years, Increase
D . 7.012 Years, Decrease
Answer: C
Section A (1 Mark)
Unabsorbed depreciation can be carried forward for ____________.
A . 8 Years
B . 4 Years
C . Indefinite
D . None
Answer: C
Section A (1 Mark)
NSSO stands for ____________
A . National Security Space Office
B . National Shared Services Organization
C . National Sample Survey Organization
D . None of the above
Answer: C