How to pass AAFM GLO_CWM_LVL_1 exam with the help of dumps?

Question # 1

Which of the following transaction /transactions is/are an example of the Layering Stage ofMoney Laundering?

A. Only II
B. II, III and IV
C. I, II and III
D. II and IV

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Question # 2

From the following information of assets assets and liabilities, the taxable wealth for:

A. Rs 1,10,00,000&Rs 40,00,000 respectively
B. Rs 1,00,00,000&Rs 40,00,000 respectively
C. Rs 1,10,00,000&Rs 50,00,000 respectively
D. Rs 70,00,000&Rs 40,00,000 respectively

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Question # 3

From the following information of assets assets and liabilities, the taxable wealth for:

A. Rs 1,10,00,000&Rs 40,00,000 respectively
B. Rs 1,00,00,000&Rs 40,00,000 respectively
C. Rs 1,10,00,000&Rs 50,00,000 respectively
D. Rs 70,00,000&Rs 40,00,000 respectively

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Question # 4

Mr. Pramod Jain (age 40 years) has life interest in a Trust property. The annual incomefrom 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 lifeinterest of Re 1/- at the age of 40 is Rs. 10.093/-. The value of the property on the valuationdate is Rs. 5 lakh. Find the value of life interest.

A. Rs. 3.84 lakh
B. Rs. 3 lakh
C. Rs. 3.27 lakh
D. Rs. 5 lakh

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Question # 5

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

A. Rs. 2,10,000
B. Rs. 1,97,500
C. Rs. 1,93,500
D. Rs. 1,83,750

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Question # 6

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 theProceeds to buy more or stock A. The correlation Between the two securities is. 35. Whatare the expected return & standard deviation of Amit’s portfolio?

A. 3.5%, 15.5%
B. 8.8%, 7.03%
C. 20% , 14.5%
D. 9.8%, 15.6%

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Question # 7

Manmeet a 29 years old person has joined Met Life on 1/07/2011. His monthly salary (netsalary) after deduction is Rs. 45000/. His monthly expenses details are as follows: Assume Manmeet has taken his flat on rent from 01/07/ 2011. On 01/07/2011 he has cashin hand Rs.15000. What will be his cash in hand on 31/03/2012?

A. RS. 195000/-
B. Rs. 205000/
C. Rs. 185000/-
D. Rs. None of the above

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Question # 8

Calculate the variance (%2) from the data given below:

A. 14.30 (%2)
B. 15.46 (%2)
C. 50.00 (%2)
D. 2.50 (%2)

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Question # 9

A trust not created by a will can be revoked only

A. (i) & (ii)
B. (ii) & (iii)
C. (i) & (iii)
D. All of the above

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Question # 10

Consider the following information for three mutual funds Risk free return is 7%. Calculate Treynor measure?

A. 4.55, 8.89, 5.83
B. 3.25, 6.78, 4.65
C. 4.35, 7.78, 4.35
D. 3.75, 7.85, 5.78

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Question # 11

"During the PY 2009-10 a Poonawala Charitable Trust earned an income of Rs. 7 lakh outof which Rs.5 lakh was received during the PY 2009-10 and the balance Rs. 2 lakh wasreceived during the PY 2011-2012.In order to claim full exemption of Rs. 7 lakh in the PY2009-10:

A. Rs 1.05 lakh and Rs 4.95 lakh
B. Rs 70,000 and Rs 3.95 lakh
C. Rs 1.05 lakh and Rs 3.95 lakh
D. Rs 70,000 and Rs 4.30 lakh

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Question # 12

You are considering investing in a 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 purchaseprice and par value. What is your post-tax approximate yield to maturity on this bond?

A. 10.09%
B. 10.83%
C. 11.92%
D. 11.06%

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Question # 13

Compute Gross Total income and amount of loss allowed to be carried forward to nextyear:

A. Rs. 34,000, Rs. 10,000/-
B. Rs. 40,000/- Rs. 10,000
C. Rs. 40,000/-, Nil
D. Rs. 40,000/- Rs. 10,000

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Question # 14

Which of the following are the rights of the beneficiaries?

A. (i) & (ii)
B. (ii) & (iii)
C. (i) & (iii)
D. All of the above

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Question # 15

You have a choice between 2 mutually exclusive investments. If you require a 15% return,which investment should you choose?

A. Project A, because it has a smaller initial investment
B. Project B, because it has a higher NPV
C. Project A, because it has the higher internal rate of return
D. Either one, because they have the same profitability indexes

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Question # 16

The following parameters are available for four mutual funds:

A. Calculate Treynor’s performance index for each of the funds on the assumption thatr=6% where r stands for the risk – free interest rate.
B. 6, 2.5, 1.43, 0
C. 7, 2.5, 2.43, 4
D. 5, 2.5, 1.43, 5
E. 6, 2.5, 1.43, 2

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Question # 17

Case: Read the data given below & answer the following questions: Market sensitive index will be:

A. 1.50%
B. 0.80%
C. 10
D. 1

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Question # 18

The management of Pearls India Shopping Ltd has recently announced that expected dividends for the next three years will be as follows: For the remaining years, the management expects the dividend to grow at 5% annually. Ifthe 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?

A. Rs. 42.39
B. Rs. 41.38.
C. Rs. 47.45
D. Rs. 39.15

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Question # 19

Ashish owns three stocks & has estimated the following joint probability distribution of returns: Calculate the portfolio’s expected return & standard deviation if Ashish invests 20% in stockX, 50% in stock Y & 30% in stock Z. Assume that each security is completely uncorrelatedwith the return of other securities.

A. 6.25%, 6.54
B. 5.25%, 2.55
C. 8.45%, 3.75
D. 4.25%, 6.54

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Question # 20

Consider the following information for three mutual funds: Calculate Jensen measure (%)?

A. 1.70, 5.30, 3.40
B. 4.35, 3.78, 2.53
C. 2.25, 3.78, 4.65
D. 3.17, 4.58, 5.78

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Question # 21

From the data given below, calculate the premium of a policy of Rs. 5 lac, for all thementioned age groups?

A. 734.50, 740.90, 754.35, 754.35
B. 751.70, 754.35, 740.90, 734.50
C. 734.50, 754.35, 751.70, 740.90
D. None of the above

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Question # 22

Consider two stocks, A and B The returns on the stocks are perfectly negatively correlated.What is the expected return of a portfolio comprising of stocks A and B when the portfolio isconstructed to drive the standard deviation of portfolio return to zero?

A. 22.24
B. 20.48
C. 19.57
D. 24.62

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Question # 23

Mr. Pradip completed construction of a residential house on 1.4.2011.Interest paid on loans borrowed for purpose of construction during the 2 years prior to completion was Rs. 40,000. The house was let-out on a monthly rent of Rs. 4,000. Property was vacant for 3 months.Compute the income under the head “Income from House Property” for the A.Y. 2012-13.

A. Rs 1000
B. 1500
C. 5000
D. 3500

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Question # 24

Mr. Bose runs his Handicrafts business. His net proceeds after deducting both the businessexpenses and living expenses are Rs. 6,00,000 p.a, which will increase at the rate of 5%.He is a bachelor and don’t intend to start any family in future either. Since he don’t haveany family obligations, he wants to sell off his business after ten years and buy a home infoothills of Himachal.He expects to sell the business for a good amount and put 40% of the proceeds in buyingthe house and setting up a retirement corpus with the rest of amount to pay off his postretirement expenses. He is philanthropic by nature and thus want to save the net revenuesfrom his business to form a charitable hospital for poor people living in Himachal. Hiscurrent living expenses are Rs. 4,00,000 p.a which will increase in line with inflation.Inflation rate is 3% and interest rate prevailing is 6%.As a CWM you are required to calculate:

A. Business: Rs 4,61,82,645, House: Rs 2,77,09,587, Hospital: Rs 97,17,000
B. Business: Rs 3,07,88,430, House: Rs 1,23,15,372, Hospital: Rs 97,17,000
C. Business: Rs 2,77,09,587, House: Rs 2,77,09,587, Hospital: Rs 80,97,653
D. Business: Rs 3,69,46,116, House: Rs 1,84,73,058, Hospital: Rs 97,17,000

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Question # 25

Alok a 28 years old person has joined SABH on 1/07/2006. His monthly salary (net salary)after deduction is payable Rs. 22500/. His monthly expenses details are as follows: Assume Alok takes a flat on rent from 01 /07/2006. On 01 /07/2006 he has cash in handRs. 1450/-. He starts paying insurance premium from October @ Rs. 2500/- pm. Hisinvestments in Mutual fund SIP are Rs. 3000/- pm for a 6 month period. What will be hiscash in hand on 31/03/2007.?

A. Rs.72150/-
B. Rs.83150/
C. Rs.69070/-
D. None of the above

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Question # 26

Calculate the Paid up Value ( PV) under a policy with the following particulars: Consolidated Reversionary Bonus declared by the insurer from March, 1990 to March 2006is 550/- per thousand sum assured. Bonus declared for the year ending March 2007 is @Rs. 70/- per thousand.

A. Rs. 19,750
B. Rs. 18,000
C. Rs. 33,500
D. Rs. 31,750

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Question # 27

During the PY 2009-10 a Kariwala Charitable Trust earned an income of Rs. 7 lakh out ofwhich Rs.5 lakh was received during the PY 2009-10 and the balance Rs. 2 lakh wasreceived during the PY 2011-2012.In order to claim full exemption of Rs. 7 lakh in the PY2009-10:

A. Rs 1.05 lakh and Rs 4.95 lakh
B. Rs 70,000 and Rs 3.95 lakh
C. Rs 1.05 lakh and Rs 3.95 lakh
D. Rs 70,000 and Rs 4,30,000

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Question # 28

Risk free rate = 6%Rank the funds based on Jenson Measure in order of best to worst.

A. CBA
B. ACB
C. ABC
D. BAC

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Question # 29

You own 3 scripts with their market value at Start of year end of year (3rd) total growth. Calculate the CAGR of portfolio.

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

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Question # 30

You own 3 scripts with their market value at Calculate the CAGR of portfolio.

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

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Question # 31

From the following information of assets assets and liabilities, the taxable wealth for:

A. Rs 1,10,00,000 & Rs 40,00,000 respectively
B. Rs 1,00,00,000 & Rs 40,00,000 respectively
C. Rs 1,10,00,000 & Rs 50,00,000 respectively
D. Rs 70,00,000 & Rs 40,00,000 respectively

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Question # 32

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?

A. Yes, because the payback is 2.5 years.
B. Yes, because the discounted payback is less than 4 years.
C. Yes, because both the payback and the discounted payback are less than 2 years
D. No, because the NPV is negative

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Question # 33

A stock earns the following returns over a five year period: What is the standard deviation of returns for the stock?

A. 22.24
B. 21.38
C. 26.71
D. 24.62

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Question # 34

Which assets are totally except from wealth tax?

A. (i), (ii), (iii)
B. (i), (ii), (iii), (iv), (v)
C. (iv), (v)
D. (ii), (iii) (v)

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Question # 35

The probability distribution of the rate of return on ABC stock is given below: What is the standard deviation of return?

A. 11.40%
B. 12.90%
C. 10.50%
D. 13.50%

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Question # 36

Mentioned below is the information regarding three mutual funds - Reliance, TATA, SBIand the Market Index. The Risk free return rate is 5%. Calculate the Jensen Measure of RELIANCE, TATA, & SBIFund.

A. 0.60, – 1.65, – 1.45
B. 0.60,1.65,1.45
C. 1.65, – 1.65, – 1.45
D. None of the above

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Question # 37

Which of the following option illustrates an advantage of the probate process? 

A. (i) only 
B. (ii) and (iii) 
C. (ii), (iii) & (iv) 
D. (i), (ii), (iii) & (iv) 

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Question # 38

Given the following information what is the expected return on the portfolio of two securities where both are held in equal weights?  

A. 15% 
B. 19% 
C. 16% 
D. 17% 

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Question # 39

The information about 3 stocks is provided below:  Assuming that the required rate of return on investment is 14%, what maximum price an investor should be willing to pay and Which Stock should he buy?

A. Rs. 23.15/-, Rs. 47.50/-, Rs.70.45/- , Share C 
B. Rs. 15.29, Rs. 43.71, Rs. 63.64, None 
C. Rs. 15.29, Rs. 22.50, Rs. 49.50, Share B and C 
D. Rs. 16.36, Rs. 49.67, Rs. 69.75, Share B only 

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Question # 40

Calculate expected rate of return on the following portfolio?  Weight of X and Y in the portfolio is 50% and 50% respectively. 

A. 19.25% 
B. 15.35% 
C. 16.40% 
D. 17.85% 

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Question # 41

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?

A. 18%, 0.456, 0.312 
B. 16%, 0.398, 0.296 
C. 16%, 0.314, 0.273 
D. 19%, 0.429, 0.316

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Question # 42

A portfolio consists of 3 securities.  What is the standard deviation of the portfolio? 

A. 2.5 
B. 3.5 
C. 7.7 
D. 6.9 

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Question # 43

Calculate the total return on the mutual fund investment with the below mentioned information:

A. 24.52%
 B. 22.47% 
C. 23.52% 
D. 23.75%

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Question # 44

Is the Z Ltd. efficiently priced according to the CAPM by taking the above information? 

A. Share price is higher and efficiently priced 
B. Share price is lower and not efficiently priced
 C. Share price is lower and efficiently priced 
D. Share price is higher and not efficiently priced 

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Question # 45

The list of managing body needs for be fixed with Registrar of Joint Stock companies 

A. Only (i)  
B. Only (ii)  
C. (i) & (iii)  
D. Only (iv)  

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Question # 46

Which of the following statements is/are correct? 

A. Only (i)
 B. Only (i) & (ii)
 C. Only (i) & (iii) 
D. All of the above 

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Question # 47

X furnishes the following particulars for the compilation of his wealth-tax return for assessment year 2012-13.

A. Rs. 2 lakh 
B. Rs. 9.50 lakh 
C. Rs. 17 lakh 
D. Rs. 9 lakh 

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Question # 48

Mr. Malhotra and Mrs.Malhotra aged 50 and 45 years respectively, both have a life expectancy of 35 years. You have following information  Calculate the adequate insurance required based on need based approach. 

A. 65 lakhs  
B. 60 lakhs 
C. 54 lakhs 
D. 44 lakhs 

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Question # 49

Find out the taxable value of perquisite from the following particulars in case of an employee to whom the following assets held by the company were sold on 1.8.2012. The assets were put to use by the company from the day they were purchased. 

A. Rs. 82,170 
B. Rs. 92,850
 C. Rs. 48,800 
D. Rs. 53,000 

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Question # 50

What is the present value of the following cash flows,if the Interest rate is 8%? 

A. 3668
 B. 2962 
C. 3961 
D. 3962 

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Question # 51

Ramesh retired as General Manager of XYZ Co. Ltd. On 30.11.2012 after rendering service for 20 years and 10 months. He received Rs. 300000 as gratuity from the employer. (He is not covered by Gratuity Act, 1972). His salary particulars are given below:  He resides in his own house interest on monies borrowed for the self occupied house is Rs. 24000 for the year ended 31.03.2013 Compute taxable income of Ramesh for the year ended 31.03.2013.

A. 258900 
B. 272600 
C. 265450 
D. 285470 

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Question # 52

Which of the following is/are the desirable contents of a will? 

A. I ,II and III 
B. II , III and IV 
C. I, III and IV
 D. All of these 

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Question # 53

Consider the following information for three mutual funds:   Market Return 10% Risk free return is 6%. Calculate the Risk Adjusted Return on the basis of Jensen measure (%)?

A. 3.45, 7.78, 4.38 
B. 2.50, 8.50, 6.60 
C. 3.60, 2.40, 6.20 
D. 3.65, 8.88, 9.36 

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Question # 54

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?

A. 13.63% 
B. 10.29% 
C. 11.05% 
D. 12.52%

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Question # 55

Consider the following information for three stocks, Stock A, Stock B, and Stock C. The returns on each of the three stocks are positively correlated, but they are not perfectly correlated. Portfolio X has half of its funds invested in Stock A and half invested in Stock B. Portfolio Y has invested its funds equally in each of the three stocks. The risk-free rate is 5%, and the market is in equilibrium. Which of the following statements is/are correct?

A. II and III 
B. Only II 
C. I,II and III 
D. Only IV 

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Question # 56

What is the present value of the following cash flows,if the Interest rate is 8% 

A. 2639 
B. 2962 
C. 3961 
D. 3962 

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Question # 57

From the following data on mutual funds, Calculate the Sharpe Ratio.  a Risk free return is 8%

A. 0.78,1.08,0.55 
B. 0.78,1.05,0.59
 C. 0.98,1.33,0.75 
D. 0.71,1.11,0.55 

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Question # 58

Consider the following information:  Which of the following statements is/are true? 

A. Only II 
B. Only III
 C. Only II 
D. None of the above 

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Question # 59

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?

A. 3.5%, 15.5% 
B. 8.8%, 7.03% 
C. 20%, 14.5% 
D. 9.8%, 15.6% 

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Question # 60

Given the following diversified mutual fund performance data, which fund has the best risk adjusted performance if the risk free rate of return is 5.7% 

A. Fund b because the annual return is highest 
B. Fund a because the Treynor ratio is lowest 
C. Fund d because the Treynor ratio is highest 
D. Fund c because the Sharpe ratio is lowest 

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Question # 61

Vikas is 35 years old working as a regional head of a multinational bank and plans to retire at 55 and is earning a salary of Rs. 4,00,000/- p.a. His life expectancy is another 15 year after retiring. He is able to save Rs. 85,000 /- p.a. (END) and regularly invests it in a 6% p.a. investment plan. Calculate what will be the Vikas’s total accumulation at his retirement? And how much he can spend per every year at beginning if he dies at the age of 70 and assuming that he leaves behind Rs. 1,00,000/- as estate.?

A. Rs. 30,22,825/- &Rs. 2,98,763/- 
B. Rs. 31,26,775/- &Rs. 2,99,665/- 
C. Rs. 30,62,860/- &Rs. 2,78,863/-
 D. Rs. 31,42,780/- &Rs. 3,45,895/- 

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Question # 62

Savitri is 30 years old. She saves Rs. 14,000/- p.a. (year end) in FD 8.75% p.a. compounded annually until she retires at age 58. Her life expectancy is 80 years. What would be her corpus at the time of retirement? What is the fixed amount she can withdraw at the beginning of each year, until age 80, in case she wishes to exhaust the whole corpus? Inflation is 5%.

A. Rs. 13,68,748/-, Rs. 87,498/- 
B. Rs. 14,96,855/-, Rs. 1,37,767/- 
C. Rs. 15,15,481/-, Rs. 97,145/- 
D. Rs. 14,24,894/-, Rs. 89,458/- 

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Question # 63

Vinod Khanna, aged 27 years, is having a policy of Rs. 15 Lac sum assured and is paying premium of Rs. 14,800/- . The cash surrender value of this policy is at the end of previous year was Rs. 35,000. It is estimated that by this year end, the cash surrender value of this policy would be Rs. 40,000/-. Bonus under this old policy is Rs. 10,000/-. There is another term insurance policy of Rs. 15 Lac Sum Assured is available to Vinod at Rs. 4,200/- per annum. If rate of interest is 8 % then first calculate the CPT of existing and new policy respectively and then advise Vinod if it is better to continue this policy or to discontinue it? 

A. 2.59 ,2.88.Continue this policy 
B. 2.45,3.35.Continue this policy 
C. 3.91 ,2.79.Discontinue this policy 
D. 3.13 ,2.97.Disontinue this policy 

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Question # 64

Puspinder Singh Ahluwalia took a housing loan on 1st. of June 2009 (EMI in arrear) of Rs. 50 lacs at a ROI of 10.75% p.a. compounded monthly for 12 years. He wants to know the deduction in taxable income he can claim u/s 24 of the IT act for the FY 2011 -12

A. 480178 
B. 150000 
C. 330178 
D. 125000

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Question # 65

A zero coupon bond of Rs 10,000 has a term to maturity of seven years and a market yield of 9 percent at the time of issue. What is the issue price? What is the duration of the bond? What is the modified duration of the bond?

A. Rs. 5470/-, 7 years, 6.422 
B. Rs. 6380/- 6 years, 7.368 
C. Rs. 5470/-, 7 years, 5.364
 D. Rs. 6380/-, 6 years, 6.897

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Question # 66

Sunil, aged 33 years, is having a policy of Rs. 1 Lac sum assured and is paying premium of Rs. 1,800/- for the last 10 years. The cash surrender value of this policy is at the end of previous year was Rs. 20,000. It is estimated that by this year end, the cash surrender value of this policy would be Rs. 22,900. There is another term insurance of sum assured of Rs. 80,000 costs Rs. 300/- per annum which is available to him . If rate of interest is 6%, then first calculate the CPT of existing and new policy respectively and then advise Sunil if it is better to continue this policy or to discontinue it?

A. 2.69 ,3.77.Continue this policy 
B. 3.45,4.33.Continue this policy 
C. 3.19 ,2.89.Discontinue this policy 
D. 4.13 ,3.97.Disontinue this policy 

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Question # 67

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?

A. Rs. 55535 
B. Rs. 50000 
C. Rs. 49000
 D. Rs. 51585 

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Question # 68

Smt. Rajalakshmi owns a house property at Adyar in Chennai. The municipal value of the property is Rs. 5,00,000, fair rent is Rs. 4,20,000 and standard rent is Rs. 4,80,000. The property was let-out for Rs. 50,000 p.m. up to December 2010. Thereafter, the tenant vacated the property and Smt. Rajalakshmi used the house for self-occupation. Rent for the months of November and December 2010 could not be realized in spite of the owner's efforts. She paid municipal Texas @12% during the year. She had paid interest of Rs.25,000 during the year for amount borrowed for repairs for the house property. Compute her income from house property for the A.Y. 2012-13.

A. Rs 281500 
B. Rs 275500 
C. Rs 269000 
D. Rs 265400 

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Question # 69

Mr. Chopra runs a Garment Factory, he is very concerned about his retirement and wants you to help him out in planning for it. His Current annual expenses are Rs. 12,00,000 which would be rising at an annual rate of 8% pre- retirement and 2% post retirement. His current age is 50 years and he wants to work till the age of 65. The expected life expectancy in his family is 75 years. Calculate the monthly contribution he must make till his retirement if the pre- retirement returns are 12% p.a. compounded monthly and post-retirement returns are 8% pea compounded annually.? 

A. 60973 
B. 59712 
C. 72376 
D. 56320 

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Question # 70

You wish to save for your son’s education the present cost of which is Rs. 320000 and is expected to increase by 6% every year. If your son is 12 years old and will require money in 8 years time, what is the annual amount of investment to be made if it is likely to earn 12% rate of return?

A. 205993
 B. 205670 
C. 210000 
D. 209553

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Question # 71

Ramesh aged 50 could not save for his retirement till date but now decides to save Rs. 50000 per month till his retirement age of 65. He anticipates that the return in the first 5 years would be 13% p.a. next 5 years 10% and in the last 5 years 8% p.a. He wants to accumulate a corpus of Rs. 1.50 Crores till his retirement. Calculate the surplus or shortfall he would have on his retirement.

A. Surplus 40 Lacs 
B. Shortfall 40 Lacs
 C. Surplus 29 Lacs 
D. Shortfall 15 Lacs 

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Question # 72

R purchased a house property for Rs. 26,000 on 10-5-1962. He gets the first floor of the house constructed in 1967-68 by spending Rs. 40,000. He died on 12-9-1978. The property is transferred to Mrs. R by his will. Mrs. R spends Rs. 30,000 and Rs. 26,700 during 1979- 80 and 1985-86 respectively for renewals/reconstruction of the property. Mrs. R sells the house property for Rs. 11,50,000 on 15-3-2007, brokerage paid by Mrs. R is Rs. 11,500. The fair market value of the house on 1-4-1981 was Rs. 1,60,000. Find out the amount of capital gain chargeable to tax for the assessment year 2007-08.

A. 308100 
B. 215410 
C. 169527 
D. 203910

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Question # 73

R acquired a property by way of gift from his father in the previous year 1991-92 when its FMV was Rs. 3 lakh. The father had acquired the property in the previous year 1983-84 for Rs. 2 lakh. This property was introduced as capital contribution to a partnership firm in which R became a partner on 10/06/2011. The market value of the asset as on 10/06/2011 was 10 lakh, but it was recorded in the books of account of the firm at Rs. 8 lakh. Compute the capital gain chargeable in the hands of R. 

A. Rs. 11,055/- 
B. Rs. 7,040/- 
C. Nil 
D. Rs. 3,075/- 

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Question # 74

Michael estimates opportunity cost of investment to be 10.5% compounded annually. Which of the following is the best proposal? 

A. Receive Rs. 5,500/- at beginning of each year for 15 years 
B. Receive Rs. 5,500/- at the end of each year for 19 years 
C. Receive Rs. 45,000/- today 
D. Receive Rs. 1,20,000/- at the end of 10 years 

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Question # 75

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. 

A. 96522 
B. 107840 
C. 97907.72 
D. 101452 

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Question # 76

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

A. 15thOf November 2015 
B. 15thOf August 2015 
C. 25thOf November 2015
 D. 15th. Of August 2016

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Question # 77

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. 

A. Akash Rs. 1,10,457/- Bina Rs. 75,204/-
 B. Akash Rs. 89,241/- Bina Rs. 60,759/- 
C. Akash Rs. 1,10,457/- Bina Rs. 60,759/- 
D. Akash Rs. 60,759/- Bina Rs. 75,204/- 

Show Answer

Question # 78

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%

A. 24465.92 
B. 25817.12 
C. 24,513.72 
D. 23478.68 

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Question # 79

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.? 

A. 119056000
 B. 117056000
 C. 129056000 
D. 139056000 

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Question # 80

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. 

A. 39441
 B. 39800 
C. 42557 
D. 36500 

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Question # 81

Mr.Singhvi is a senior manager in a advertising firm in Mumbai. During the previous year 2011-12, he gets the following emoluments: Basic salary Rs.30, 000 per month, dearness allowance: 10% of basic salary, city compensatory allowance: Rs.300 per month, children education allowance:Rs.500 per month (for 3 children), house rent allowance: 20% of salary (rent paid Rs.2000 per month). He gets Rs. 21,000 as a reimbursement from his employer in respect of medical expenditure incurred on treatment of his wife in a private clinic. Besides, he gets Rs.12, 400 as reimbursement from the employer in respect of books and journals purchased by him in discharging his official work. He contributes 11% of his salary to statutory provident fund to which a matching contribution is made by the employer. During the year, he spends Rs.15, 000 for maintaining a car for going to the college. Determine his net income under the head of salaries. 

A. 426600 
B. 417600 
C. 515600 
D. 528600 

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Question # 82

Mahesh earns 1,20,000 pa. He has total debt of Rs. 2,00,000 and have two dependants. Interest rate is 7%, and assumes 80% of his pre-death salary is the estimated requirement to maintain his family after paying the loan. Calculate the life insurance cover needed under multiple approach method.

A. 18 lakhs 
B. 15 lakhs 
C. 12 lakhs 
D. 16 lakhs 

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Question # 83

Pankaj is an employee of a private company in Jabalpur. He draws an amount of Rs 36,000pm as basic salary. He also receives Rs 8000 as HRA. He has taken a house on rent from 1st October and pays Rs 10,000pm as rent for his house accomodation. What would be the taxable HRA?

A. Rs. 96,000 
B. Rs 19,200 
C. Rs 76,800 
D. Rs 57,600

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Question # 84

Yogesh Jain is a Chartered Accountant by profession and a very disciplined investor he has started investing from today in an account Rs. 1,00,000 every year (beginning of year) and plans to increase his contribution by 10% every year. If the ROI he gets is 15% per annum compounded half yearly calculate the corpus he would be able to accumulate in 25 years.?

A. 47379847 
B. 52117831 
C. 48763660 
D. 44330600 

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Question # 85

Sudesh Haldia is employed at Delhi as Store Manager in one of the Retail Companies. Theparticulars 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?

A. Rs. 16, 500
B. Rs. 26,250
C. Rs. 19,125
D. Rs. 31,500

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Question # 86

Mr. Patel expects the stock of A to sell for Rs. 70/- a year from now and to pay Rs. 4/- dividend. If the stock’s correlation with the Market is –0.3, and the standard deviation of A is 40% and standard deviation of the Market is 20% and the risk free rate of return is 5% and the market risk premium is 5% , what would be the price of stock A be now ?

A. 74 
B. 73.65 
C. 72.55 
D. 75.65

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Question # 87

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? 

A. Rs.45 lacs
 B. Rs.47 lacs 
C. Rs.46 lacs 
D. Rs.44 lacs 

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Question # 88

X owns a piece of land situated in Varanasi ( Date of acquisition : March 1, 1983, Cost of acquisition Rs. 20,000/- value adopted by Stamp duty authority at the time of purchase Rs. 45,000/-) On March 30, 2012 the piece of land is transferred for 4 lakh. Find out the capital gains chargeable to tax if the value adopted by the Stamp duty authority is 5.5 lakh. And X does not dispute it. [CII-12-13: 852,11-12: 785,10-11:711]

A. Rs. 4,05,963/- 
B. Rs. 3,45,963/- 
C. Rs. 3,80,963/-
 D. Rs. 4,15,963/- 

Show Answer

Question # 89

Dinesh took a housing loan of Rs. 25,00,000/- for 15 years in 2010 at a ROI of 11.75% perannum compounded monthly. Calculate the total interest and principle paid by him in the2014 and 2016.

A. Option A
B. Option B
C. Option C
D. Option D

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Question # 90

Mr. Munjal has got her daughters son admitted to a dental college today, where he has to pay a fee of Rs. 1.5 Lac today i.e. at the time of admission. Then Rs. 1.75 lacs after 1 year, Rs. 2.5 lacs after 2 years and Rs. 3.25 lacs after 3 years. He wants to set aside the amount required today itself in the form of a Bank FDR.So how much he needs to put aside today if ROI is 8% for 1 year, 8.5% for 2 years and 9% for 3 years, all compounded Quarterly?

A. Rs. 7,71,807.05 
B. Rs. 7,81,911.05 
C. Rs. 8,93,541.07 
D. Rs. 8,51,657.10

Show Answer

Question # 91

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

A. Rs 467000 
B. Rs 510000
 C. Rs 493000 
D. Rs 475000 

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Question # 92

Ram purchased a house in Mumbai in March 2000 for Rs.3,50,000. In April,2009 he entered into an agreement to sell the property to Shyam for a consideration of Rs.1975000 and received earnest money of Rs.500000. As per the terms of the agreement, the balance payment was to be made within 30 days of the agreement. If the intending purchaser does not make the payment within 30 days, the earnest money would be forfeited. As Shyam could not make the payment within the stipulated time the amount of Rs.500000 was forfeited by Ram. Subsequently Ram sold the house in June,2009 for Rs.2130000. He paid 2% brokerage on sale of the house. Calculate the capital gains chargeable to tax for the assessment year 2010-11. [CII-12-13: 852,11-12: 785,10-11:711,09-00:389] 

A. 2087400
 B. 887400 
C. 695322 
D. 659322

Show Answer

Question # 93

Mohan is a manager in ABC Co. Ltd. His family consists of his wife and child. It is assumed that his family needs a minimum of Rs. 10,000 per month to maintain current standard of life in unfortunate case of demise of Mohan. The interest rate is 6% pa. Calculate how much insurance is required under income replacement method? 

A. 20 lakhs  
B. 15 lakhs 
C. 25 lakhs 
D. 18 lakhs 

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Question # 94

Shruti has invested Rs. 12000 for 8 years at the rate of interest of 6%. What amount she will get after 8 years if amount is compounding annually for the first 5 years and semi annually for the last 3 years?

A. 19803.43
 B. 19174.92 
C. 18976.24 
D. 19203.46 

Show Answer

Question # 95

Ankur Kalra is 33 years old finance professional. The house hold expenditure of Mr. Kalra is 20,000/- p.m. to maintain his current living standard. He assumes that his living standard will increase 1.5% annually until his retirement at 60. His life expectancy is 70 years. At retirement he needs 75% of his last year’s expenses. Inflation rate for the next 45 years is expected to be 4% p.a. Calculate how much would Mr. Kalra require in the first year after his retirement, and how much he has to save at end of every year to accumulate this corpus, if the return on investment is 7% p.a.?

A. Rs. 10,09,656/-, and Rs. 89,508/- 
B. Rs. 7,63, 992/- and Rs. 90,550/- 
C. Rs. 8,26,912/- and Rs. 85470/- 
D. Rs. 9,20,338/- and Rs. 98,862/- 

Show Answer

Question # 96

Ram purchased a house in Mumbai in March 2004 for Rs.12,50,000. In April, 2011 entered into an agreement to sell the property to Shyam for a consideration of Rs.19,75,000 and received earnest money of Rs.50,000. As per the terms of the agreement, the balance payment was to be made within 30 days of the agreement. If the intending purchaser does not make the payment within 30 days, the earnest money would be forfeited. As Shyam could not make the payment within the stipulated time the amount of Rs.50,000 was forfeited by Ram. Subsequently Ram sold the house in June,2012 for Rs. 21,30,000. He paid 2% brokerage on sale of the house. Calculate the capital gains chargeable to tax for the assessment year 2012-13. [CII-12-13: 852,11-12: 785,10-11:711,03-04:463]

A. 52,843 
B. 659322 
C. 253565
 D. 659002 

Show Answer

Question # 97

Rhona has a daughter Zena five years old. She wants to plan for Zena’s education and has found out that she would be requiring 2,75,000 at her age 18 and another 4,50,000 on her age 25. She also wants to have Rs. 10,00,000 for Zena’s Marriage which she expects at the age of 28. She wants to deposit the entire amount for these expenses today in an account that pays a ROI of 15% per annum compounded annually. What would this amount be?

A. 40174 
B. 27495 
C. 144695 
D. 112365 

Show Answer

Question # 98

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. 846777 
B. 593912 
C. 693912 
D. 774921 

Show Answer

Question # 99

The current dividend on an equity share of MAGADH Limited is Rs.8.00 on earnings per share of Rs. 30.00. Assume that the growth rate of 20 percent will decline linearly over a five year period and then stabilize at 12 percent. What is the intrinsic value of MAGADH ’s share if the investors’ required rate of return is 15 percent? 

A. Rs. 352/- 
B. Rs. 383/-
 C. Rs. 416/- 
D. Rs. 469/-

Show Answer

Question # 100

Suresh is an employee of a private company in Mumbai. He draws an amount of Rs 36,000pm as basic salary. He also receives Rs 8000 as HRA. He has taken a house on rent from 1st October and pays Rs 10,000pm as rent for his house accomodation. What would be the taxable HRA? 

A. Rs 19,200 
B. Rs 76,800 
C. Rs 57,600 
D. Rs 96,000

Show Answer

Question # 101

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?

A. NIL 
B. Rs 1000 
C. Rs 4000 
D. Rs 7000 

Show Answer

Question # 102

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?

A. NIL 
B. Rs 1000 
C. Rs 4000 
D. Rs 7000 

Show Answer

Question # 103

Akash owns a piece of land situated in Kolkata ( Date of acquisition : March 1, 1983, Cost of acquisition Rs. 20,000/- value adopted by Stamp duty authority at the time of purchase Rs. 45,000/-) On March 30, 2012 the piece of land is transferred for 4 lakh. Find out the capital gains chargeable to tax if the value adopted by the Stamp duty authority is 5.75 lakh. And X files an appeal under the Stamp Act and Stamp duty valuation has been reduced to Rs. 4.90 lakh by the Kolkata High Cout. [CII-12-13: 852,11-12: 785,10-11:711] 

A. Rs. 4,05,963/- 
B. Rs. 3,45,963/- 
C. Rs. 3,80,963/-
 D. Rs. 4,15,963/- 

Show Answer

Question # 104

The Portfolio consists of two securities, X and Y in the ratio of 70:30. Given that and covariance between them is 16%, what is the portfolio risk?

A. 13.77%
B. 8.04%
C. Nil
D. 25%

Show Answer

Question # 105

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. Pleasecalculate for him the Future Value of these investments when his son turns 18.

A. 2177626
B. 2379057
C. 2797057
D. 3379057

Show Answer

Question # 106

Ram purchased a house in Mumbai in March 2000 for Rs.3,50,000. In April,2011 he entered into an agreement to sell the property to Shyam for a consideration of Rs.19,75,000 and received earnest money of Rs.5,00,000. As per the terms of the agreement, the balance payment was to be made within 30 days of the agreement. If the intending purchaser does not make the payment within 30 days, the earnest money would be forfeited. As Shyam could not make the payment within the stipulated time the amount of Rs.5,00,000 was forfeited by Ram. Which of the following statement is correct in respect of the above problem? [CII-12-13: 852,11-12: 785,10-11:711,84-85: 125] 

A. Rs.500000 will be taxable as short term capital gain 
B. Rs.500000 will be taxable as long term capital gain 
C. Rs.150000 will be taxable under some other head other sources
D. Rs.150000 is not liable to tax 

Show Answer

Question # 107

Calculate the death claim amount if the assured dies in the 25th year of the policy. Money back policy with SA of Rs. 50000. Term is 25 years. Survival benefits of 10% each paid at the end of 5th , 10th, 15th, and 20th years. Accrued bonus of Rs. 500 per thousand of SA.Interim bonus of Rs. 75 per 1000 of SA. 

A. 50000 
B. 57500 
C. 100000 
D. 107500 

Show Answer

Question # 108

During the past five years, the returns on the stock were as follows:

A. 34.7,5.89
B. 35.6, 5.71
C. 16, 5.59
D. None of the above

Show Answer

Question # 109

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: 

A. 211600  
B. 183800 
C. 178800 
D. 174800 

Show Answer

Question # 110

Asit an industrialist wants to buy a car presently costing Rs. 10,00,000/- after 5 years. The cost of the car is expected to increase by 10% pea for the first 3 years and by 6% in the remaining years. Asit wants to start a SIP with monthly contributions in HDFC Top 200 Mutual Fund. You as a CWM expect that the fund would give an average CAGR of 12% in the next 5 years. Please advise Asit the monthly SIP amount starting at the beginning of every month for the next 5 years to fulfill his goal of buying the Car he desires.

A. 1495512 
B. 18614.48
 C. 20614.48 
D. 18311.71

Show Answer

Question # 111

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.?

A. 8723098 
B. 7465780
 C. 11655750
 D. 9695565

Show Answer

Question # 112

Yami Ltd is a one of most accredited tours and travels company in India. It pays dividend per share of Rs. 0.24 on reported earning per share of Rs. 0.512 in 2011. The firms earnings per share have grown at 8% over the prior 5 year but that growth rate is expected to decline linearly over the next 5 years to 3%, while the payout ratio remains unchanged. The beta for the stock is 0.9. The risk free rate is 4.2% and the market risk premium is 4%.

A. Rs. 6.18 
B. Rs. 5.43 
C. Rs. 5.78 
D. Rs. 6.26 

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Question # 113

Mr. M is an employee of Z Ltd. His basic pay is Rs.24,000 p.a., Dearness Allowance Rs.12,000 p.a; Medical Allowance (fixed) Rs.10,000 p.a.; Conveyance Allowance Rs.6,000 p.a.; Professional Tax deducted from his salary Rs.1,000 p.a.; Free lunch provided during office hours valued at Rs.12,000 for a 300-working day year; free education for two children in a school owned and maintained by the employer – school tuition fee for both the children is estimated at Rs.18,000 p.a. What is Net Income of Mr. M and examine whether he is a specified or non-specified employee?

A. Rs. 51,000, Specified Employee 
B. Rs. 50,000, Non Specified Employee 
C. Rs. 48,000, Specified Employee 
D. Rs. 57,000, Non Specified Employee

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Question # 114

A salaried individual, aged 45 years, was awarded a car of market value Rs. 6,50,000 by his credit card company in a draw on 20th December 2012. There was no TDS by the company. He has total income from salary of Rs. 8,45,000 in the previous year 2012-13. He saved a total of Rs. 1,80,000 under different investment instruments eligible for exemption u/s 80C and Rs. 25,000 was paid by him on 5th January, 2013 towards his health insurance policy. Find his tax liability for AY2013-14. 

A. Rs. 2,77,070/- 
B. Rs. 2,79,130/- 
C. Rs. 2,60,590/- 
D. Rs. 78,280/- 

Show Answer

Question # 115

The following information regarding the equity shares of M/s V Ltd. is given Calculate the EPS of M/s V Ltd. according to the traditional approach

A. Rs. 22.50
B. Rs. 26.00
C. Rs. 30.00
D. Rs. 27.00

Show Answer

Question # 116

A portfolio manager is considering buying Rs. 1,00,000 worth of Treasury bills for Rs. 96,211 versus Rs. 100,000 worth of commercial paper for Rs. 95,897. Both securities will mature in nine months. How much additional return will the commercial paper generate over the Treasury bills?

A. 0.45% 
B. 0.27% 
C. 0.35% 
D. 0.21%

Show Answer

Question # 117

Mr. Ajay and Vijay both are 30 years old. And both are 30 years away from their retirements. Ajay saves Rs. 10,000/- p.a. for 8 years and stops. Vijay starts investing after Ajay stops and saves Rs. 10,000/- p.a. till he retires. Their savings earn 10% p.a. compounded yearly. At the retirement what is true? 

A. Vijay saves more than Ajay by Rs. 5,99,668/- 
B. Vijay saves more than Ajay by Rs. 1,40,000/- 
C. Ajay saves more than Vijay by Rs. 1,40,000/- 
D. Ajay saves more than Vijay by Rs. 2,16,886/- 

Show Answer

Question # 118

Mr. M is an area manager of M/s Allwin Ltd. During the financial year 2007-08, he gets thefollowing emoluments from his employer: Compute taxable salary of Mr. M for the Assessment year 2008-09.

A. Rs. 2,75,000
B. Rs. 3,09,850
C. Rs. 2,48,800
D. Rs. 3,53,000

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Question # 119

Mr. Rajesh Rawat deposits Rs. 15,000 per month at the end of the month for 6.50 years in an account that pays a ROI of 8.80% per annum compounded quarterly. What will be the amount in the account after 6.50 years.?

A. 1571140 
B. 1567650
 C. 91666 
D. 91654

Show Answer

Question # 120

Mr. John purchased a house in Mumbai in March 2010 for Rs.12,50,000. In April,2011 he entered into an agreement to sell the property to Mr. Akram for a consideration of Rs.19,75,000 and received earnest money of Rs. 50,000. As per the terms of the agreement, the balance payment was to be made within 30 days of the agreement. If the intending purchaser does not make the payment within 30 days, the earnest money would be forfeited. As Mr. Akram could not make the payment within the stipulated time the amount of Rs.50000 was forfeited by John. Subsequently John sold the house in June, 2011 for Rs.2130000. He paid 2% brokerage on sale of the house. Calculate the capital gains chargeable to tax for the assessment year 2012-13. [CII-12-13: 852,11-12: 785,10- 11:711]

A. 659322 
B. 887400 
C. 689536 
D. 692556 

Show Answer

Question # 121

Compute Gross Total income and amount of loss allowed to be carried forward to nextyear:

A. Nil, Rs. 10,000/-
B. Rs. 10,000/- Rs. 40,000
C. Nil Nil
D. Rs. 10,000/- Rs. 10,000/-

Show Answer

Question # 122

Mr. Ravi aged 28 years is a marketing professional who earns a salary of Rs. 50000 p.m. He is very concerned about his retirement expenses. For the same he has started saving Rs. 6000 p.m. regularly in a bank fixed deposit paying an interest of 9.5% p.a. since the age of 23. At the age of 38, he is thinking of buying a house on his retirement which is 25 years away. He has estimated that the price of the house at his retirement will be Rs. 4000000. Calculate the amount of retirement corpus accumulated by him and the extra savings he has to make at the age of 38 in order to purchase the house? (Inflation rate = 3% p.a.)  

A. Rs. 32617751 &Rs. 9281 
B. Rs. 20036777 &Rs. 6870 
C. Rs. 32617751 &Rs. 3281 
D. Rs. 20036777 &Rs. 3500

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Question # 123

Miss. Nidhi Gupta has sold 600 calls on DR. REDDY’S LAB at a strike price of Rs.992 for a premium of Rs.25 per call on April 1, 2007. The closing price of equity shares of DR. REDDY’S LAB is Rs.994 on that day. If the call option is assigned against her on that day, what is her net pay off?

A. Pay-off of Rs.18300 
B. Pay-off of Rs.-18300
 C. Pay-off of Rs.-13800 
D. Pay-off of Rs.13800 

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Question # 124

A trust is extinguished

A. I, II and III
B. Only I and IV
C. All of the above
D. II, III and IV

Show Answer

Question # 125

Mr. Sushil, is 35 years old and working as a physician in a private hospital. He will retire at the age of 60. He is saving Rs. 30,000/- p.a. at the end of every year for past 5 years and will continue to save the same up to his retirement @ 7% p.a. His annual expenditure is Rs. 3,00,000/-. Life expectancy of Mr. Sushil is 75 years. On retirement, rate of interest is expected to be 6%. Calculate on retirement how much he can spend per annum if he leaves Rs. 5,00,000/- as estate for next generation?

A. Rs. 2,47,375 
B. Rs. 2,51,823 
C. Rs. 2,54,997 
D. Rs. 2,42,320 

Show Answer

Question # 126

Management has recently announced that expected dividends for the next three years willbe as follows: For the subsequent years, management expects the dividend to grow at 5% annually. If therisk-free rate is 4.30%, the return on the market is 10.30% and the firm’s beta is 1.40. Whatis the maximum price that you should pay for this stock?

A. Rs. 167.25
B. Rs. 41.38
C. Rs. 165.45
D. Rs. 168.86

Show Answer

Question # 127

Sachin aged 35 years is married and is working as a manager in M/s Birla Mill Ltd. His most likely retirement age is 60 years. His present salary is Rs. 3,00,000/- pa. His selfmaintenance expenses are 30,000/- per year. Life insurance premium paid is 15,000/-. Income tax & professional tax amount to Rs. 20000/-. Rate of interest assumed for capitalization of future income is 8%. Calculate Sachin’s HLV to recommend adequate insurance cover

A. Rs. 20 lakh 
B. Rs. 35 lakh 
C. Rs. 45 lakh 
D. Rs. 27 Lakh 

Show Answer

Question # 128

Azhar aged 30 is a disciplined investor. He has started depositing Rs. 25,000 every year in an account that pays a return of 9% every year. He plans to increase his contribution by Rs. 5000 every year till his age 50. Calculate the amount he would be having in his account at this age.?

A. 1731111 
B. 1279000 
C. 30101111 
D. 29101111 

Show Answer

Question # 129

"Consider the following information for three stocks, Stock A, Stock B, and Stock C. Thereturns on each of the three stocks are positively correlated, but they are not perfectlycorrelated. Portfolio X has half of its funds invested in Stock A and half invested in Stock B. Portfolio Yhas invested its funds equally in each of the three stocks. The risk-free rate is 5%, and themarket is in equilibrium.Which of the following statements is/are correct?

A. II and III
B. Only II
C. I,II and III
D. Only IV

Show Answer

Question # 130

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? 

A. Rs. 4,05,421/- 
B. Rs. 3,77,476/- 
C. Rs. 3,93,355/- 
D. Rs. 3,85,324/- 

Show Answer

Question # 131

Mr. Shyam has a portfolio consisting of two stocks A & B. Stock A has a standard deviation of 5 % while stock B has a standard deviation of 15%. Stock A comprises 40% of the portfolio and Stock B consists of 60%. If the correlation of returns of A& B is .5, the variance of return on the portfolio is _________.

A. –0.0035 
B. –0.0085 
C. 0.0094 
D. 0.0103 

Show Answer

Question # 132

Shri Ganjarwala Charitable Trust (Regd.) submits the particulars of its income/outgoing forthe previous year 2009-2010 as below: The trust spends Rs 2,77,500 during the previous year 2009-2010 for charitable purposes.In respect of Rs 5,20,000, it has exercised its option to spend it within the permissible timelimitin the year of receipt or in the year, immediately following the year of receipt.The trust spends Rs 2,00,000 during the previous year 2009-2010 and Rs 1,00,000 duringthe previous year 2010-2011.Compute the tax payable on the income of the trust.

A. 2080
B. 2160
C. 2060
D. 2200

Show Answer

Question # 133

Mr. D'suza is a operations manager in a private company college in Hyderabad. During the previous year 2011-12, he gets the following emoluments: He gets Rs. 17,500 as reimbursement from his employer in respect of medical expenditure incurred on treatment of his wife in a private clinic. Besides, he gets Rs.12, 300 as reimbursement from the employer in respect of books and journals purchased by him in discharging his official work. He contributes 11% of his salary to statutory provident fund to which a matching contribution is made by the employer. During the year, he spends Rs.17, 000 for maintaining a car for going to the college. Determine his net income under the head salaries. 

A. Rs 395300 
B. Rs 375700 
C. Rs 415300
 D. Rs 418900

Show Answer

Question # 134

Mr. Kumar is a 40 year old NRI working abroad for past 5years. He invests Rs. 50, 000/- p.a. for past 5 years and wants to continue until his return to India. He plans to return to India after 10 years from now and enjoy his life back home. Inflation is expected to be 4% for next 30 years and his investment earns 6% interest. His expected life expectancy is 70 years. What would be his corpus at the time of return to India, and what amount he can with draw per month for his household expenses?

A. Rs. 12,14,279/- and Rs. 6,358 
B. Rs. 11,63,798/- and Rs. 5,845 
C. Rs. 13,12,008/- and Rs. 7,008 
D. Rs. 12,14,279/- and Rs. 9,554 

Show Answer

Question # 135

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 purchaseprice and par value. What is your approximate post-tax yield to maturity on this bond?

A. 10.91%
B. 11.38%
C. 9.07%
D. 11.78%

Show Answer

Question # 136

Find the Human Life Value for a person who is 30 years old.He wishes to retire at age of 60. Interest rate is expected to be 12%. He spends Rs. 60000 on his personal clothing and Rs. 40,000 on his conveyance. He has paid Rs. 65000 as tax for the year. His gross annual income is Rs. 5 lakhs.

A. 3022305 
B. 1822305 
C. 1722305 
D. 1625000 

Show Answer

Question # 137

What amount needs to be deposited today in an account that would pay Rs. 1,10,000 per year for the first 10 years and Rs. 2,25,000 for the next 5 years. If the ROI for the first 10 years if 10.75 % p.a. compounded annually and 13% p.a. compounded quarterly for the balance period.?

A. 779030 
B. 912336 
C. 935282 
D. 995282 

Show Answer

Question # 138

Sonia works at the post office. She deposits Rs. 1000 on every birthday into a retirement plan which paid an interest rate of 8% from the age of 20 years until she retired. If she had Rs. 260000 in her retirement plan when she retired, at what age did she retire?

A. 55
 B. 60 
C. 59 
D. 57 

Show Answer

Question # 139

The probability distribution of the rate of return on a stock is given below: What is the standard deviation of return?

A. 5.69
B. 5.46
C. 7.9
D. 9.4

Show Answer

Question # 140

Rate of 15% pea compounded annually will be equal to ---------------- % per month.  

A. 1.25% per month
 B. 1.7149% per month 
C. 1.17149% per month 
D. 1.117% per month 

Show Answer

Question # 141

Mr. Kadam is entitled to a salary of Rs. 25000 per month. He is given an option by his employer either to take house rent allowance or a rent free accommodation which is owned by the company. The HRA amount payable was Rs. 5000 per month. The rent for the hired accommodation was Rs. 6000 per month at New Delhi. Advice Mr. Kadam whether it would be beneficial for him to avail HRA or Rent Free Accommodation. Give your advice on the basis of “Net Take Home Cash benefits”. 

A. Avail HRA 
B. Rent Free Accomodation
 C. Both are Beneficial 
D. None of the Above 

Show Answer

Question # 142

A stock caries the following returns over a five year period: c

A. Calculate the following:
B. Arithmetic mean return,
C. Cumulative wealth index &
D. Geometric mean return.
E. 11.5%, 1.4557, 18.61%
F. 11.2%, 1.5557, 10.25%
G. 11.2%, 1.3457, 10.51%
H. 11.2%, 1.6557, 10.61%

Show Answer

Question # 143

Vinod joined on 01/01/90 in ABC Ltd. and retired on 01/01/2007.Employee paid leave encashment of Rs. 4,00,000/-. His last drawn salary is Rs. 25000/-. His last 10 months average salary is 23500/-. He availed 150 days leave during the service. What will be his taxable leave salary amount?

A. 4,00,000 
B. 2,35,000 
C. 2,82,000 
D. 1,65,000 

Show Answer

Question # 144

Jaya is the owner of two residential houses. She sold one house on 23-12-2011 for Rs.12,50,000 which was purchased by her on 25-4-1979 for Rs.80,000. The market value of the land as on 1-4-1981 was Rs.98,000. Expenses on transfer were 1.5% of the sale price. The entire sale proceeds was utilized to construct the first and second floor on her second house which she completed by 15-3-2010. Compute the capital gain for the assessment year 2012-13. [CII-12-13: 852,11-12: 785, 10-11:711, 83-84: 116]

A. 562506 
B. 461950 
C. 570360 
D. NIL 

Show Answer

Question # 145

You as a Chartered Wealth Manager have been approached by a client who is depositing some amount in an account that pays a ROI of 12% p.a compounded monthly. She also has an option of investing in another account that pays ROI 12.76% p.a. compounded annually. She wants to know which of these is a better choice. 

A. 12% P.A compounded monthly is better 
B. 12.76% P.A. Compounded Annually is better 
C. 12.76% P.A. is better by .0775 % 
D. 12% P.A compounded monthly is better by .0775% 

Show Answer

Question # 146

Vikash owns a piece of land situated in Delhi ( Date of acquisition : March 1, 1983, Cost of acquisition Rs. 20,000/- value adopted by Stamp duty authority at the time of purchase Rs. 45,000/-) On March 30, 2012 the piece of land is transferred for 4 lakh. Find out the capital gains chargeable to tax if the value adopted by the Stamp duty authority is 5.60 lakh. And X does not challenges it under the Stamp Act. However, he claims before the Assessing Officer that Rs. 5.60 lakh is more than the fair market value of the land. The assessing Officer refers it to the valuation Officer who determines Rs. 5.25 lakh as fair market value. [CII-12-13: 852,11-12: 785,10-11:711]

A. Rs. 4,05,963/- 
B. Rs. 3,45,963/- 
C. Rs. 3,80,963/- 
D. Rs. 4,15,963/- 

Show Answer

Question # 147

The correlation coefficient between returns on stock of M/s X Ltd and the market returns is 0.3. The variance of returns on M/s X Ltd. is 225(%)2 and that for the market returns is 100(%)2 . The risk-free rate of return is 5% and the market return is 15%. The last paid dividend is Rs. 2 and the current purchase price is Rs. 30. The growth rate for the company is 10%. The required rate of return on the security as per the Capital Asset Pricing Model is: 

A. 10% 
B. 11.30%
 C. 9.50% 
D. 12.50% 

Show Answer

Question # 148

A businessman sold Rs. 85 lakh value of unlisted securities on 20th December 2012. These shares were acquired in April 2008 for Rs. 20 lakh. He invested Rs. 40 lakh from these proceeds in February 2013 in his first residential house to avail benefit under Section 54F of the Income-tax Act, 1961. What approximate amount of bonds specified under Section 54EC should he purchase and by what date so as to make his capital gains liability almost “Nil” towards these transactions? Cost inflation index for FY 2008-09: 582, 2012-13: 852.

A. Rs. 26.23 lakh, 19th June 2013 
B. Rs. 15.73 lakh, 30th July 2013 
C. Rs. 27.01 lakh, 30th July 2013 
D. Rs. 29.50 lakh, 19th June 2013 

Show Answer

Question # 149

Mr. Reddy is 58 years old and has just retired from his company,and have a total retirement benefits of Rs. 29,37,500/-. His life expectancy is 75 years. He has a dream to take a world-trip after 2 years from now with an estimated current price of Rs. 4,00,000/-. He has finalized a flat of Rs. 15,00,000/- for immediate purchase. Calculate how long his corpus will run if his post retirement living expenses in the beginning of every year is Rs. 1,35,000/- considering inflation @ 4% and rate of return is 6% p.a.? 

A. 12.65 
B. 8.22 
C. 11.34 
D. 12.22

Show Answer

Question # 150

Amit an industrialist wants to buy a flat in a housing society presently costing Rs. 35,00,000/- after 6 years. The cost of the house is expected to increase by 15% pea for the first 3 years and by 10% in the remaining years. Amit wants to start a SIP with monthly contributions in Birla Front Line Equity Mutual Fund to pay for the down payment of the house which would be 25% of the house value at that time. You as a CWM expect that the fund would give ROI of 14% p.a. compounded monthly in the next 10 years. Please advise Amit the monthly SIP amount starting at the beginning of every month for the next 6 years to fulfill his goal of buying the Flat he desires. 

A. 63422.72 
B. 65185.55 
C. 16537.56 
D. 15883.32 

Show Answer

Question # 151

Mr. Raja Ram is working as a regional head in a Pharmaceutical Company. He has a annual income of Rs. 10,00,000. He will be retiring in next ten years. His current expenses are Rs. 5,00,000. 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 spacious and airy bungalow located on the suburbs of the city (his long cherished dream). 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 he 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 buy his dream house.

A. 4.67 lacs 
B. 7.219 lacs 
C. 7.56 lacs 
D. 6.56 lacs 

Show Answer

Question # 152

Samantha celebrated her 21st birthday today, her father gave her Rs. 6,25,000/- which is deposited in a account that pays a ROI of 12.25% p.a. compounded monthly. If she wants to withdraw Rs. 7,50,000 on her 31st. Birthday and balance on her 41stBirthday. How much can she withdraw on her 41st. birthday.?

A. 2114431 
B. 1364431 
C. 4615995 
D. 4333264 

Show Answer

Question # 153

Choose the amount of final tax liability of R for the assessment year 2007-08:

A. 17100
B. 17442
C. 15700
D. 16014

Show Answer

Question # 154

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.?

A. 11.25% 
B. 10.60% 
C. 12.40%
 D. 15.00% 

Show Answer

Question # 155

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

A. 500.85 
B. 50.85 
C. 950.85 
D. 450 

Show Answer

Question # 156

Vinod opened the PPF account on 19/11/2000, Calculate the amount he can avail as thefirst loan facility from the details below?

A. Rs 17967
B. Rs 18103
C. Rs 19800
D. Rs 17500

Show Answer

Question # 157

Your client, a businessman has a house worth Rs. 2.1 crore and a farm house worth Rs. 85 lakh. His business is worth Rs. 10 crore as per last balance sheet. He has two other partners in the business having stakes of 24% each. He has two cars purchased at Rs. 40 lakh and Rs. 20 lakh, the latter being in personal account. The cars have depreciated/market value at Rs. 30 lakh and Rs. 8 lakh, respectively. His joint Demat account, wife being primary holder, has stocks worth Rs. 1.65 crore. The business has taken Keymans insurance on his life of value Rs. 1.5 crore. He has himself insured his life for an assured sum of Rs. 1.5 crore. You evaluate your client’s estate in case of any exigency with his life as _____. 

A. Rs. 8.20 crore 
B. Rs. 9.56 crore
 C. Rs. 10.51 crore 
D. Rs. 5.73 crore 

Show Answer

Question # 158

Shweta joins a private limited company covered under the PF Act. The employer contributes for all employees up to the specified salary limit. Her monthly salary consists of Rs. 10000 as basic, Rs. 5000 as DA and 10% of the basic as HRA. What would be the deduction from her monthly salary towards the statutory PF benefits?

A. Rs. 780 
B. Rs. 1200 
C. Rs. 1800 
D. Rs. 1920 

Show Answer

Question # 159

Pushkar completed the construction of a house property on 14.8.2008 with borrowed capital of Rs.800000 @ 12%. The loan was taken on 1.4.2006 and is still outstanding. The house was used for his own residence during the entire FY 10-11. Deduction U/S 24(B) for interest on borrowed capital for FY shall be

A. 150000 
B. 30000
 C. 96000 
D. 134400 

Show Answer

Question # 160

Which one of the following statements is/are correct?

A. (i) only
B. (ii) only
C. Both are correct
D. Both are incorrect

Show Answer

Question # 161

What is the surrender value, if the sum assured is Rs. 100,000/-, DOC is 01/01/1997, endowment with profit 25 years, due date of last premium paid 01/01/2010. Premium to be paid semi-annually. Accrued bonus is 500 per thousand of SA. Surrender value factor is 19% ?

A. 23750 
B. 21565
 C. 15010 
D. 12825

Show Answer

Question # 162

You want to take a trip overseas which costs Rs. 10 lacs. The cost is expected to remain unchanged in nominal terms. You can save annually Rs. 50000 to fulfill the desire. How long will you have to wait if your savings earn an interest rate of 12%?

A. 10.79 years  
B. 11.00 years 
C. 11.23 years 
D. 10.99 years 

Show Answer

Question # 163

Indexed cost of acquisition is calculated by

A. Option A
B. Option B
C. Option C
D. Option D

Show Answer

Question # 164

Omar wants to make a gift of Rs. 10000 in today’s terms to his parents at the end of each of next 10 years. If the annual rate of return is 8% and inflation is 3%, what is the value of funds he must have in hand today to meet this need for the 10 year period? 

A. 81541 
B. 77766 
C. 76251 
D. 82713 

Show Answer

Question # 165

Mr. Nitin, a trading and a clearing member, took proprietary position in August 2007 expiry contract. He bought 10000 units of SAIL@ Rs.140 and sold 8000 units @ Rs.143.50. The end of the day settlement price for August 2007 expiry contact is Rs.141. If the initial margin per unit of SAIL for August 2007 is Rs.42 per unit, then the total initial margin payable by Nitin would be_______

A. Rs.84000 
B. Rs.420000 
C. Rs.3360000
 D. None of the above 

Show Answer

Question # 166

A rate of interest of 10% semi-annual compounded quarterly would be equal to ---------------- ---- % per annum compounded annually

A. 20% per Annum Compounded Annually 
B. 21.55% per Annum Compounded Annually 
C. 20.50% per Annum Compounded Annually 
D. 21% per Annum Compounded Annually 

Show Answer

Question # 167

Which of the following is/are the incorrect pairing in the history of exchange rate regime?

A. A and B
B. Only B
C. Only C
D. A and C

Show Answer

Question # 168

Derive policy cost per thousand with following data:

A. 34.79
B. 22.75
C. 13.55
D. 10.51

Show Answer

Question # 169

Given the following data, which one of the options will be monthly premium installment? Rebate for large sum assured Upto Rs. 24,999/- No rebateFrom Rs. 25,000/- to 49,999/- @ Re 1 per thousand SAFrom Rs. 50,000 and above @ Rs. 2 per thousand SA

A. Rs. 6,524/-
B. Rs. 6,512/-
C. Rs. 6,485/-
D. Rs. 6,501/-

Show Answer

Question # 170

(CII for 1992-1993=223 and CII for 2011-2012 =785)Calculate the LTCG in both cases?

A. 12,00,000 and 1,43,946
B. 10,80,000 and 1,45,850
C. 11,00,000 and 10,80,000
D. 10,00,000 and 10,12,946

Show Answer

Question # 171

Calculate the Net worth of Mr. Surinder Nath with the following financial details as:

A. Rs 91.3 lakh
B. Rs 90.7 lakh
C. Rs 90.3 lakh
D. Rs 92.5 lakh

Show Answer

Question # 172

Rahul and Priyanka went to a wealth manager. Both of them have just got married. Theirfunds are limited and their needs are many. Some of their needs are: Kindly suggest the order in which they should start providing for their above needs:

A. B,D,A,C,E
B. A,E,B,C,D
C. B,A,D,E,C
D. C,E,A,C,D

Show Answer

Question # 173

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?

A. On 06-10-2009 
B. On 01-10-2009 
C. On 28-09-2009 
D. On 25-09-2009 and return India before 25-03-2010 

Show Answer

Question # 174

An individual has recently purchased a house worth Rs. 40 lakh for self-occupation by availing housing loan of Rs. 28 lakh at 9.25% p.a. rate of interest. The tenure of loan is 18 years. He has Rs. 12 lakh financial assets at present. He is expected to save annually Rs. 2 lakh which he invests on a quarterly basis beginning a quarter from now in an instrument which is expected to provide return of 9% p.a. What would be his net worth five years from now? The value of the house which is for consumption purposes is not considered in the net worth so arrived.

A. Rs. 2.83 lakh 
B. Rs. 18.82 lakh
C. Rs. 6.68 lakh 
D. Rs. 7.36 lakh 

Show Answer

Question # 175

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?

A. 2959874 
B. 771755 
C. 3731629 
D. 3598455 

Show Answer

Question # 176

The difference between aggregate disbursements net of debt repayments and recovery of loans and revenue receipts and non debt capital receipts is called:

A. Conventional Deficit 
B. Gross Fiscal Deficit 
C. Net Fiscal Deficit 
D. Primary Deficit 

Show Answer

Question # 177

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 ________. 

A. 12.2%. 
B. 15.4%. 
C. 17.8%. 
D. 18.2%.

Show Answer

Question # 178

How much loan can be given from PPF account in the year 2006-07? 

A. 25% of the PPF balance in the year 2004-05 
B. 25% of the PPF balance in the year 2005-06 
C. 25% of the opening balance as on 01-04-06 
D. None of the above

Show Answer

Question # 179

Ramesh has invested Rs. 70,000, 30% of which is invested in Company A, which has an expected rate of return of 15%, and 70% of which is invested in Company B, with an expected return of 12%. What is the expected percentage rate of return?

A. Rs. 13.87% 
B. Rs. 12.90% 
C. Rs. 13.40% 
D. Rs. 13.17% 

Show Answer

Question # 180

A money back policy for SA of Rs. 100000/-. Matured after 25 years. Survival benefits of 15% each has been paid at the end of 5th , 10th, 15th, and 20th years. Bonus has accrued at Rs. 965/- per Rs. 1000 SA. Interim bonus @ Rs. 25/- per thousand SA is payable. What is the maturity claim amount?

A. 139000 
B. 136500 
C. 99000
 D. 96500 

Show Answer

Question # 181

Manjeet, aged 33 years, is having a policy of Rs. 1 Lac sum assured and is paying premium of Rs. 1,800/- for the last 10 years. The cash surrender value of this policy is at the end of previous year was Rs. 20,000. It is estimated that by this year end, the cash surrender value of this policy would be Rs. 22,900. New term insurance of sum assured of Rs. 80,000 costs Rs. 300/- per annum today as per Manjeet’s age. If rate of interest is 6% then please advise Manjeet if it is better to continue this policy or to discontinue it? 

A. To continue this policy 
B. To discontinue this policy 
C. More information required 
D. Data insufficient 

Show Answer

Question # 182

If a Rs. 100 par value preferred stock pays an annual dividend of Rs. 5 and comparable yields are 10 percent, the price of this preferred stock will be 

A. Rs. 100 
B. Rs. 75 
C. Rs. 50 
D. Rs. 25 

Show Answer

Question # 183

Contribution under a defined benefit plan

 A. Will be fixed in relation to the wages earned 
B. Will be determined based on the benefits earned 
C. Will remain unaltered once earned
 D. Will be decided by the members of the benefit scheme 

Show Answer

Question # 184

Broadly, world over the minimum investable assets for MULTI FAMILY OFFICE SEGMENT is :

A. USD 20,000,000 
B. USD 50,000,000 
C. USD 10,000,000 
D. USD 30,000,000 

Show Answer

Question # 185

Find out the effective quarterly rate for 18% per annum compounded half yearly. 

A. 4.403% per Quarter 
B. 4.50% per Quarter 
C. 9.00% per Quarter 
D. 4.44% per Quarter 

Show Answer

Question # 186

You are considering investing Rs 1,500 at an interest rate of 5% compounded annually for 2 years or investing the Rs1,500 at 7% per year simple interest rate for 2 years. Which option is better?  

A. Simple Interest by Rs56.25 
B. Compound Interest by Rs114.05 
C. Compound Interest by Rs52.75 
D. Simple Interest by Rs75.19 

Show Answer

Question # 187

Dinesh is entitled to a basic salary of Rs. 5,000 p.m. and dearness allowance of “Rs. 1,000 per month, 40% of which forms the part of the retirement benefits. He is also entitled to HRA of Rs. 2,000 p.m. He actually pays Rs. 2,000 p.m. as rent for a house in Delhi. Compute the taxable HRA

A. Rs. 17,520 
B. Rs. 32,400
 C. Rs. 18,000 
D. Rs. 24,000 

Show Answer

Question # 188

Purpose of budget is ____________ 

A. Spend money wisely 
B. Reach financial goals 
C. Prepare for financial emergencies 
D. All of the above

Show Answer

Question # 189

Economists group commercial banks, savings and loan associations, credit unions, mutual funds, mutual savings banks, insurance companies, pension funds, and finance companies together under the heading financial intermediaries. Financial intermediaries 

A. act as middlemen, borrowing funds from those who have saved and lending these funds to others.
 B. play an important role in determining the quantity of money in the economy. 
C. help promote a more efficient and dynamic economy. 
D. do all of the above. 

Show Answer

Question # 190

A maximum of _____% of the issue would be allotted to one single QIB 

A. 10 
B. 25
 C. 50 
D. 75 

Show Answer

Question # 191

The shares of Alpha were bought on Jan 1 for Rs 110/-. During the year Alpha paid a dividend of Rs 2/- per share. At the end of the year, share of Alpha was sold for Rs 115/- What is the total return on Alpha?

A. 4.36% 
B. 6.36% 
C. 7% 
D. 8.42% 

Show Answer

Question # 192

Which of the following is a reasonable assumption to make about the understanding of a client on the Wealth planning Process?

A. Client would have identified a desirable asset allocation 
B. Client would have some prior understanding of the assumptions on which the wealth plan is made 
C. Client would understand the financial products being recommended 
D. Client would be able to identify his financial goals 

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Question # 193

Tushar owns a piece of land situated in Patna (Date of acquisition: March 1, 1983, Cost of acquisition Rs. 20,000/- value adopted by Stamp duty authority at the time of purchase Rs. 45,000/-) On March 30, 2012 the piece of land is transferred for 4 lakh. Find out the capital gains chargeable to tax if the value adopted by the Stamp duty authority is 5.60 lakh. And X does not challenges it under the Stamp Act. However, he claims before the Assessing Officer that Rs. 5.60 lakh is more than the fair market value of the land. The assessing Officer refers it to the valuation Officer who determines Rs. 6.10 lakh as fair market value. [CII-12-13: 852,11-12: 785,10-11:711]

A. Rs. 4,05,963/- 
B. Rs. 3,45,963/- 
C. Rs. 3,80,963/- 
D. Rs. 4,15,963/- 

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Question # 194

When cash flows occur at the beginning of each period, it is called as ___________ 

A. Annuity in arrear 
B. Annuity due 
C. Ordinary annuity 
D. None of the above

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Question # 195

You bought a stock for Rs. 20 and sold it for Rs. 59.72 after six years. What was the annual rate of return?

A. 18% 
B. 16% 
C. 21% 
D. 20% 

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Question # 196

A Post Office Recurring Deposit account can be prematurely closed after _______ years and ________ interest would be payable on prematurely closed account. 

A. 4 Years, Post Office Time Deposit 
B. 3 Years, Post Office Savings Account 
C. 1 Year, Post Office Recurring Deposit 
D. 1 Year, Post Office Savings Account 

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Question # 197

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.

A. Rs 7,41,766 
B. Nil 
C. Rs 11,18,234 
D. Rs 12,45,745

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Question # 198

What is the exemption criteria U/S 10(10) (ii) of the IT Act, 1961 for any gratuity received by a seasonal employee?

A. Exemption limit is least of there: (i) 7 day’s wages (calculated as 26 working days in a month) based on last drawn salary for every number of seasons worked, (ii) Rs. 3,50,000/-, (iii) Actual gratuity received 
B. Exemption limit is least of three: (i) 7 day’s wages based on last drawn salary for every number of seasons worked, (ii) Rs. 3,00,000/-, (iii) Actual gratuity received 
C. Exemption limit is least of three: (i) 15 day’s wages based on last drawn salary for every completed year (ii) Rs. 3,50,000/-, (iii) Actual gratuity received 
D. Exemption limit is least of three: (i) 15 day’s wages based on last drawn salary for every completed year (ii) Rs. 4,00,000/-, (iii) Actual gratuity received 

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Question # 199

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?

A. 49% 
B. 30%
 C. 70% 
D. 51% 

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Question # 200

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

A. After 1/4/99
 B. on or after 1/4/99 
C. Before 1/4/99 
D. On or after 1/9/2004 

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Question # 201

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

A. Rs. 72,000 
B. Rs. 60,000 
C. Nil 
D. Rs. 1,23,000 

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Question # 202

If a preferred stock pays an annual Rs. 4.50 dividend, what should be the price of the stock if comparable yields are 10 percent? What would be the loss if yields rose to 12 percent?

A. Rs. 450/- loss Rs. 75 
B. Rs. 45/- loss Rs. 7.50 
C. Rs. 45/- loss Rs. 4.50 
D. Rs. 450/- loss Rs. 6.25

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Question # 203

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 ?

A. Rs. 45,780/-
 B. Rs. 55,563/- 
C. Rs. 41,546/-
 D. Rs. 44,682/-

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Question # 204

Mukul 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/-. Please 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).

A. 17,85,129 
B. 17,26,175 
C. 17,01,639 
D. 17,45,508 

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Question # 205

Sujoy has purchased shares of Rs.12500 of common stock in Hindustan Unilever . He has recently sold investment to the tune of Rs.15000 & received Rs 2500 as cash dividends during the holding period of 4 years. He paid a total of Rs 250 in commissions. What is CAGR on the investment?

A. 8.23% 
B. 9.75% 
C. 9.05% 
D. 10.72% 

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Question # 206

Spot Nifty is at 5000. One month Nifty call with strike price of Rs. 4800 is trading at Rs. 250 per call. An investor buys 100 Nifty calls. At expiry Nifty closes at 5500. Net profit / loss of the investor is Rs. ___. 

A. 50000
 B. -50000 
C. 45000
 D. -45000

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Question # 207

Pranoy is entitled to a basic salary of Rs. 5,000 p.m. and dearness allowance of Rs. 1,000 per month, 40% of which forms the part of the retirement benefits. He is also entitled to HRA of Rs. 2,000 p.m. He actually pays Rs. 2,000 p.m. as rent for a house in Delhi. Compute the taxable HRA.

A. Rs. 17,520 
B. Rs. 32,400 
C. Rs. 18,000 
D. Rs. 24,000

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Question # 208

Mukesh a 35 years old man is a self employed businessman, engaged in the business of selling medical equipments and plans to retire from his business and hand it over to his children at age of 55, after which he wants to relax and enjoy his retired life. He is now earning around Rs. 4,00,000/- p.a. His life expectancy is another 15 years after retirement. After paying for his expenses he is able to save Rs. 85,000 /- p.a., and regularly invest it in a 6% p.a. investment plan. Calculate what will be the Mukesh’s total accumulation at his retirement? And if he wants to spend 4,00,000/- per year at beginning and dies at the age of 70 and assuming that he leaves behind Rs. 1,00,000/- as estate, what will be the short-fall in corpus?

A. Rs. 30,22,825/- &Rs. 2,98,763/- (Surplus) 
B. Rs. 31,26,775/- &Rs. 10,32,945/- (Deficit) 
C. Rs. 31,26,775/- &Rs. 6,63,823/- (Deficit) 
D. Rs. 30,22,825/- &Rs. 2,98,763/- (Surplus) 

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Question # 209

Mr Ram aged 53 years has put in 21 years of service in a PSU opts for a voluntary retirement under the company scheme. He has 5 years and 3 months of service left and his last drawn salary is Rs 18,000. He received Rs 10,00,000 as compensation. What would be the taxable part of this receipt?

A. Rs 5,00,000 
B. Rs 6,00,000 
C. Rs 1,34,000 
D. NIL 

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Question # 210

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)

A. 17,01,639 
B. 18,46,975 
C. 17,68,683 
D. 16,29,508

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Question # 211

Major phases of budgeting process are: 

A. Assessing Current situation and recommendation of products 
B. Recommendation of products and Planning Financial direction 
C. Assessing current situation and planning financial direction
 D. None of the above

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