Section A (1 Mark)
Which of the following is the process of enabling personnel to deliver service in manner
that is beneficial to both the organization’s customers and to itself?
A. Training
B. Recruitment
C. Empowerment
D. Accountability
Section C (4 Mark)
Keshav and Deepti Gohlyan approached you a Chartered Wealth Manager for preparing a
Wealth plan to achieve their financial goals. Keshav Gohlyan, aged 45 years, is working in
Chennai in an MNC, at a managerial level. His wife Deepti, aged 42 years, is working in a
Private Company and has a post-tax income of Rs. 4 lakh p.a. She is expected to retire at
the age of 55 years. Keshav’s gross salary is likely to grow at 7% p.a. and Deepti's gross
salary is likely to grow at 6% p.a. The couple has two children – daughter Yogita, aged 18
years, pursuing her Graduation in Economics, and son Navneet, aged 16 years, studying in
12th standard. Navneet intends to become a Doctor.
Keshav's monthly household expenses are Rs. 40,000 out of which Rs. 8,000 is of
Keshav’s personal expenses, this excludes EMI on loans and Insurance premiums. Keshav
has two siblings Keshav and his family stay with his mother. His father passed away due to
severe heart attack on 15-Dec-2009, at the age of 75 years, leaving a house (Value on
15thDec 2009 Rs. 25 lakh) in which they are currently staying.
Keshav has a term insurance of Rs. 20 lakh (for 20 years); the term expires 5 years from
now. Both are covered under Group Medical Insurance for Rs. 4 Lakh family floater each
provided by their respective employers
Assets
The couple’s assets as on 31-3-2010 are;
1.Cash in Hand Rs. 10,000
2.Bank balance Rs. 50,000
3.Diversified Equity Mutual Fund units at market value Rs. 2.60 lakh
4.Equity Shares at market value Rs. 15.25 lakh
5.Debt oriented Mutual Fund units at market value Rs. 1.65 lakh
6.PPF A/c balance Rs. 4.25 lakh (Keshav), Rs. 3.15 lakh (Deepti), both maturing on1st
April 2016
7.ELSS Mutual Fund units at market value Rs. 75,000
8.A separate house is in the joint name of Keshav and Deepti with 50% ownership of each.
This house has two floors and is let out for rent of Rs. 8,000 p.m. each floor.
Present Market Value of this House is Rs. 70 Lakh1
9.Gold Ornaments at market value Rs. 6.35 lakh
10.Car at market value Rs. 2.60 lakh
11.300 Gold ETF units purchased on 17th Oct 2006 @ 983 per unit
12.National Saving Certificates invested amount Rs. 4 lakh
13.Money back insurance plan of 20 year term with sum assured of Rs. 5 Lakh2
14.Unit linked insurance plan of 10 years with sum assured of Rs. 5 lakh3
Section A (1 Mark)
_____________ is the transfer of the balance of an existing home loan that you availed at
a higher rate of interest (ROI) to either the same HFC or another HFC at the current ROI a
lower rate of interest.
A. Refinance Loans
B. Balance Transfer Loans
C. Home Conversion Loans
D. Home Extension Loans
Section A (1 Mark)
Mr. Roy is now 45 years old. He has invested Rs. 1,75,000/- in an annuity which will pay
him after 10 years a certain amount p.a. at the end of every year for 10 years. Rate of
interest is 7% p.a. compounded annually Calculate how much he will receive at the end of
every year after 10 years?
A. 48982
B. 344251
C. 49014
D. 48214
Section B (2 Mark)
In order to determine the residential status of an NRI returning to India for permanent
settlement, for the year of return, besides the stay not exceeding 181 days an additional
condition is applicable that of stay not totalling to____________ days or more in relevant
year if his stay in earlier ___________ years totaled to 365 days or more.
A. 90 and 3
B. 60 and 4
C. 180 and 5
D. 180 and 3
Section A (1 Mark)
Wealth Enhancement is _____________
A. Ways to maximize tax efficiency of current assets and cash flows while achieving capital growth and preservation goals
B. Using insurance to ensure wealth is protected
C. Legally structuring the future disposition of current assets to minimize the benefits to chosen beneficiaries
D. None of the above
Section C (4 Mark)
Read the senario and answer to the question.
If Saxena’s debentures have a balance maturity period of 15 years &the coupons are
payable annually, what should be the market valuation of these debentures, if risk free
interest rate is taken as the required IRR?
A. Rs. 10,00,000
B. Rs. 16,38,807
C. Rs. 17,76,980
D. Rs. 7,76,980
Section A (1 Mark)
A loan where the borrower pays interest each period, and repays some or all of the
principal of the loan over time is called a(n) _________ loan.
A. Amortized
B. Continuous
C. Balloon
D. Pure discount
Section A (1 Mark)
Debt Equity Ratio is 3:1,the amount of total assets Rs.20 lac, current ratio is 1.5:1 and
owned funds Rs.3 lac. What is the amount of current asset?
A. Rs.5 lac
B. Rs.3 lac
C. Rs.12 lac
D. None of the above
Section A (1 Mark)
Mortgage loans:
A. Are used to purchase real estate.
B. Are primarily long term.
C. Usually have more than half the balance remaining when the loan is half-way to maturity.
D. All of the above.
Section B (2 Mark)
If a portfolio manager has a good ability to forecast overall market but a poor ability to
select undervalued securities, the following strategy would suit best to him.
A. Concentrate holdings in selected undervalued stocks and shift beta below and above the desired long-term average based on market forecasts
B. Hold a broadly diversified portfolio of stocks and keep beta stable at the desired longterm average
C. Concentrate holdings in selected undervalued stocks and keep beta stable at the desired long-term average
D. Hold a diversified portfolio of stocks and shift beta above and below desired long-term average based on market forecasts
Section A (1 Mark)
_________________makes us throw more good money after money already gone bad.
A. Sunk Cost Fallacy
B. Money Illusion
C. Present-biased preferences
D. Inter Temporal Consumption
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