Online Access Free CWM_LEVEL_2 Practice Test

Section C (4 Mark)
Suppose Nifty is at 4500 in May. An investor, Mr. A, executes a Short Strangle by selling a Rs. 4300 Nifty Put for a premium of Rs. 23 and a Rs. 4700 Nifty Call for Rs 43.
What would be the Net Payoff of the Strategy?
* If Nifty closes at 3735
* If Nifty closes at 5265

• A.501 and -499
• B.499 and 154
• C.C 499 and 501
• D.-499 and -499

Section B (2 Mark)
You buy a share of ABC Ltd for Rs. 20. You expect it to pay dividends of Re.1, Rs.1.10 and Rs.1.21 in coming three years. Calculate the growth rate in dividend:

• A.6%
• B.8%
• C.10%
• D.5%

Section B (2 Mark)
The feature of the APT that offers the greatest potential advantage over the CAPM is the ______________.

• A.use of several factors instead of a single market index to explain the risk-return relationship
• B.identification of anticipated changes in production, inflation and term structure as key factors in explaining the risk-return relationship
• C.variability of coefficients of sensitivity to the APT factors for a given asset over time
• D.superior measurement of the risk-free rate of return over historical time periods

Section A (1 Mark)
Tax exemption limit for the lump sum received towards Leave encashment on retirement is at
_______________

• A.Rs. 3.5 lacs
• B.Rs. 2.4 lacs
• C.Rs. 3 lacs
• D.Rs. 2 lacs

Section C (4 Mark)
Read the senario and answer to the question.
Calculate the income chargeable to tax from rented flat of Kolkata, for the assessment years 2008-09 and
2009-10.

• A.Rs. 78,400, Rs. 89,600
• B.Rs, 68,600, Rs. 86,300
• C.Rs. 82,600, Rs. 78,400
• D.Rs. 78,400, Rs. 82,600