Chartered Wealth Manager (CWM) Global Examination GLO_CWM_LVL_1 Online Free Test

1. 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.

2. 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. ___.

3. 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?

4. Mukul purchased a flat on 1-4-1996 for Rs. 10,00,000/-. He sells the same flat on 1-10­2006 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).

5. 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?

6. 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?

7. 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

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

9. 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?

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

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

12. 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.

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

14. Indexed cost of acquisition is calculated by

A)



B)



C)



D)

15. You bought a stock for Rs. 20 and sold it for Rs. 59.72 after six years.

What was the annual rate of return?

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

17. 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]

18. Which one of the following statements is/are correct?

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

20. 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?

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

22. 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

23. Purpose of budget is ____________

24. 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

25. 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?

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

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

28. Contribution under a defined benefit plan

29. 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

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

31. 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?

32. 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?

33. 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?

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

35. 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 ________.

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

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

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

39. The probability distribution of the rate of return on a stock is given below:



What is the standard deviation of return?

40. 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?

41. 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.

42. 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 2010C11 from the residential status point of view. In the year 2008C09 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?

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

44. 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 purchase price and par value.

What is your approximate post-tax yield to maturity on this bond?

45. 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_______

46. 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?

47. Shri Ganjarwala Charitable Trust (Regd.) submits the particulars of its income/outgoing for the 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 time-limit in 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 during the previous year 2010-2011.

Compute the tax payable on the income of the trust.

48. 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%?

49. "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?

50. 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%?

51. 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

52. Management has recently announced that expected dividends for the next three years will be as follows:



For the subsequent years, management expects the dividend to grow at 5% annually. If the 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?

53. A trust is extinguished

54. 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?

55. Compute Gross Total income and amount of loss allowed to be carried forward to next year:

56. Mr. M is an area manager of M/s Allwin Ltd. During the financial year 2007-08, he gets the following emoluments from his employer:



Compute taxable salary of Mr. M for the Assessment year 2008-09.

57. 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 _____.

58. 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

59. 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.?

60. 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

61. 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.?

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

63. 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. Please calculate for him the Future Value of these investments when his son turns 18.

64. 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.

65. 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?

66. Dinesh took a housing loan of Rs. 25,00,000/- for 15 years in 2010 at a ROI of 11.75% per annum compounded monthly. Calculate the total interest and principle paid by him in the 2014 and 2016.

A)



B)



C)



D)

67. 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.

68. 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.?

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

The particulars 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 31-12­2006.

From 1-1-2007 the rent was increased to Rs. 4000 p.m. Compute the taxable HRA?

70. 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.

71. 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:

72. Mentioned below is the information regarding three mutual funds - Reliance, TATA, SBI and the Market Index.



The Risk free return rate is 5%. Calculate the Jensen Measure of RELIANCE, TATA, & SBI Fund.

73. 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]

74. 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.

75. The probability distribution of the rate of return on ABC stock is given below:



What is the standard deviation of return?

76. Which assets are totally except from wealth tax?

77. A stock earns the following returns over a five year period:



What is the standard deviation of returns for the stock?

78. 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?

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

80. 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]

81. You own 3 scripts with their market value at



Calculate the CAGR of portfolio.

82. 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?

83. You own 3 scripts with their market value at Start of year end of year (3rd) total growth.



Calculate the CAGR of portfolio.

84. Risk free rate = 6%



Rank the funds based on Jenson Measure in order of best to worst.

85. 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”.

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

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

88. 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?

89. 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.?

90. 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.

91. 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 2006 is 550/- per thousand sum assured.

Bonus declared for the year ending March 2007 is @ Rs. 70/- per thousand.

92. 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 hand Rs. 1450/-. He starts paying insurance premium from October @ Rs. 2500/- pm. His investments in Mutual fund SIP are Rs. 3000/- pm for a 6 month period.

What will be his cash in hand on 31/03/2007.?

93. Mr. Kumar is a 40 year old NRI working abroad for past 5years. He invests Rs. 50, 000/­

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?

Rs. 12,14,279/- and Rs. 6,358

Rs. 11,63,798/- and Rs. 5,845

Rs. 13,12,008/- and Rs. 7,008

Rs. 12,14,279/- and Rs. 9,554

94. 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.

95. 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 _________.

96. 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?

97. Mr. Bose runs his Handicrafts business. His net proceeds after deducting both the business expenses 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 have any family obligations, he wants to sell off his business after ten years and buy a home in foothills of Himachal.

He expects to sell the business for a good amount and put 40% of the proceeds in buying the house and setting up a retirement corpus with the rest of amount to pay off his post retirement expenses. He is philanthropic by nature and thus want to save the net revenues from his business to form a charitable hospital for poor people living in Himachal. His current 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:

98. 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.?

99. 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 self-maintenance 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

100. 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?

101. 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?

102. 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.)

103. 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: 785,10­11:711]

104. 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.

105. 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.?

106. 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?

107. 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 is constructed to drive the standard deviation of portfolio return to zero?

108. 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?

109. 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.

110. 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 C 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?

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

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%.

113. Consider the following information for three mutual funds:



Calculate Jensen measure (%)?

114. 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 stock X, 50% in stock Y & 30% in stock Z. Assume that each security is completely uncorrelated with the return of other securities.

115. 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.?

116. 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. If the 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?

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

118. 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.

119. The following parameters are available for four mutual funds:

120. 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:

121. 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.

122. 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]

123. You have a choice between 2 mutually exclusive investments.

If you require a 15% return, which investment should you choose?

124. 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]

125. Which of the following are the rights of the beneficiaries?

126. 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?

127. Compute Gross Total income and amount of loss allowed to be carried forward to next year:

128. 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 purchase price and par value.

What is your post-tax approximate yield to maturity on this bond?

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

130. Consider the following information for three mutual funds



Risk free return is 7%. Calculate Treynor measure?

131. A trust not created by a will can be revoked only

132. 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?

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

134. 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?

135. 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.?

136. Manmeet a 29 years old person has joined Met Life on 1/07/2011. His monthly salary (net salary) 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 cash in hand Rs.15000.

What will be his cash in hand on 31/03/2012?

137. 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?

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

139. Mr. Pramod Jain (age 40 years) has life interest in a Trust property.

The annual income from 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 life interest of Re 1/- at the age of 40 is Rs. 10.093/-. The value of the property on the valuation date is Rs. 5 lakh. Find the value of life interest.

140. 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?

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

142. Which of the following transaction /transactions is/are an example of the Layering Stage of Money Laundering?

143. 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]

144. 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.?

145. 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%

146. 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?

147. Consider the following information:



Which of the following statements is/are true?

148. From the following data on mutual funds, Calculate the Sharpe Ratio.



Risk free return is 8%.

149. 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?

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

151. 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?

152. 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?

153. 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]

154. 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.

155. 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?

156. 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]

157. 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?

158. 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 C0.3, 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?

159. 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.?

160. 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?

161. 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?

162. 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.

163. 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.

164. 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 (%)?

165. 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.

166. 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.?

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

168. 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%

169. 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.

170. 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.

171. 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/-.

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

173. 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.

174. 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.

175. Michael estimates opportunity cost of investment to be 10.5% compounded annually.

Which of the following is the best proposal?

176. 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.

177. 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.

178. 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 1979­80 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.

179. 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.

180. 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?

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

182. Which of the following statements is/are correct?

183. 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.?

184. 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.

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

186. 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?

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

188. 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?

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

190. 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?

191. 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

192. A portfolio consists of 3 securities.



What is the standard deviation of the portfolio?

193. 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?

194. 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%.

195. 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?

196. Calculate expected rate of return on the following portfolio?



Weight of X and Y in the portfolio is 50% and 50% respectively.

197. 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?

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

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

200. 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.?

201. Notice of loss should be given to the insurer within ________days of the event of loss.

202. Which of the following is/are the basic classification of financial risk?

203. GDP at factor cost is equal to ________

204. In addition to the contribution employer has to pay ______________% of wages as administration charges.

205. X, a shopkeeper says to Y, who manages his business C “Sell nothing to Z unless he pays you ready money, for I have no opinion of his honesty”. Can Z claim against X for defamation?

206. Cash Flow is a tool that is more useful for

207. The markets for funds traded in currencies other than the currency of the trading country are referred to as

208. Which among the following is not an advantage of setting up a trust?

209. How many sections are there in Householder’s Insurance Policy?

210. The standard deviation of the returns of a portfolio of securities will be _________ the weighted average of the standard deviation of returns of the individual component securities.

211. Which of the following Mutual Funds was not set up within the Phase 2: 1987-1993?

212. SRO stands for

213. Which of the following is not the non- formal sources of law?

214. If a testator makes a will ‘to induce another person to make him comply with his (testators) wish’ but does not have any testamentary operation or intention, then this will is called as

215. Unabsorbed depreciation can be carried forward for ____________.

216. Which of the following is allowed as deduction from net annual value of a property?

217. Any amount payable and the amount of refund due under the Income Tax Act,1961 shall be rounded off to the nearest multiple of..........?

218. __________ records net change in ownership of foreign assets

219. A muslim gentleman can leave his will, bequeathing all his properties to someone often than his legal heirs to the extent of…………….

220. Which of the following is not an essential element of a trust?

221. The portfolio manager adds new stock to a portfolio. The stock has the same standard deviation as the existing portfolio but a correlation of coefficient with the existing portfolio that is less than +1.

What effect will adding the new stock have on standard of the revised portfolio?

222. Urban land means land situated in area not being more than ………………from local list of local authority as notification in official Gazette

223. Fundamental Analysis involves

224. As per rule 69 of doubling, what is the doubling period if rate of interest is 9%

225. Mathematically the Efficient Frontier is the intersection of the Set of Portfolios with ....…. Variance and the Set of Portfolios with ……. Return.

226. In case of resident of India, income from property situated in foreign country is taxable

227. AUM stands for

228. Once the client accepts the proposal to prepare a wealth plan what is the next thing done by a wealth manager?

229. A person is said to be Agnate of another if the two of them are related by blood or adoption entirely or wholly through males.

230. Which of the following is not correct in relation to ETFs?

231. Types of shares are

232. A “Mass Affluent” segment client has investible assets worth of

233. A kind of lease in business organisations wherein the lesssor and lessee agree to a payment schedule (normally some months) have no payment and penalty

234. Interest rate charged are higher in ……………

235. Which of the following measure is most widely used as an indicator of inflation?

236. What is the minimum amount one can deposit in a PPF account in a financial?

237. Stock dividends cause

238. Preparation of budget of a client is like doing _______________ for a patient

239. Markets in which funds are transferred from those who have excess funds available to those who have a shortage of available funds are called

240. _______ is an unconditional written order to pay money.

241. Which one of the following sections of the Transfer of Property Act, defines ’Notice’

242. In “Teenage Years” life stage, one learns about ___________

243. How many registered offices can a company have?

244. “Early accumulation” life stage is normally during ______

245. Which of the following statement is true?

246. Partition can be effected orally & there is no requirement in law that the partition must the evident try a written agreement

247. What is ‘Mudharabah’

248. If POA in respect of in moveable property of value more than ………………….it must be registered

249. Surender the driver causes injuries to a pedestrian by rash driving of car. The injured victim had to spend Rs.1000 in treating his injuries. Surender ‘s act has created liabilities under

250. First step in developing a Wealth Management Plan is

251. Merton’s theory is ___________

252. Which of the following is not a business risk?

253. According to the capital asset pricing model, the expected rate of return on any security is equal to __________.

254. Multi period hedging is ________

255. What is the minimum paid up capital needed to form a public limited company?

256. For a “single income family” priority is on

257. Which of the following are the basic requirements for an existence of an HUF?

258. If any expenditure is incurred by an Indian company wholly and exclusively for the purpose of amalgamation or demerger, the said expenditure is

259. Government has changed certain industries related regulation in Parliament, it is an example of:

260. IFSC stands for:

261. Solvency ratio is usually __________ in the case of young couples as compared to senior citizens

262. SHG stands for:

263. During “Financial Independence” life stage, typical asset allocation should be

264. Where one can open an account under the Public Provident Fund Scheme, 1968?

265. Mutual funds in India are required by SEBI to

266. A public trust is created for the benefit of

267. NSSO stands for ____________

268. Which of the following options is not true about CODICIL?

269. In a life insurance contract, offer refers to