Free CWM_LEVEL_1 Exam Braindumps
Chartered Wealth Manager Level 1 Questions 61–65 (page: 14)

Updated On: 9-Feb-2026

Which of the following statement is true?

  1. A bond with a balloon payment cannot not have a sinking fund
  2. Calculation of the returns earned on a high-yield security should include the sale price of the bond as well as interest received
  3. A firm may not repurchase bonds at a discount
  4. A diversified portfolio of high-yield securities may be achieved with ten or fewer bonds

Answer(s): C



___________ and __________ mandates are two kinds of service level contracts.

  1. Advisory, Discretionary
  2. Discretionary, Managed
  3. Advisory, Managed
  4. All of the above

Answer(s): D



Default risk means

  1. Borrower may not pay principal in time
  2. Borrower may not be able to sell the security easily
  3. Fluctuation in price due to change in interest rate
  4. All of the above

Answer(s): D



Which of the following is covered under section 80D of the income-tax Act, 1961?

  1. Repayment of loan taken for higher education
  2. Medical treatment of handicapped dependent
  3. Medical insurance premium
  4. Reimbursement of medical expenses

Answer(s): C



After the satisfaction of insured claim from the insurer, should the insured pursue in the recovering of rights from the 3rd party.

  1. Yes, If he is willing to do so
  2. No, there is no obligation on his part
  3. Yes, he has a duty to the same
  4. Yes, if there is a mutual consent between insurer & the insured

Answer(s): B



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