Free GLO_CWM_LVL_1 Exam Braindumps (page: 23)

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In a Mutual Fund Structure as per the latest guidelines the fund sponsor has to contribute:

  1. At least 30% of the AMC's net worth at conforms to SEBI guidelines
  2. At least 35% of the AMC's net worth at conforms to SEBI guidelines
  3. At least 40% of the AMC's net worth at conforms to SEBI guidelines
  4. Exactly 50% of the net worth of AMC

Answer(s): B



Which of the following statement is true?

  1. Ordinary share capital is a high-risk high reward source of finance for investors
  2. Companies can freely price their share issues.
  3. Book building is a process to elicit demand for and price of, securities
  4. All of the above

Answer(s): D



Which of the following is not one of the assumptions of the CMT?

  1. All investors have the same one-period time horizon.
  2. There are no personal income taxes.
  3. There is no interest rate charged on borrowing.
  4. There are no transaction costs.

Answer(s): C



Compute Geometric mean return for an investment with the following per period return ­ 8.9%, 10%, 7.7%, 13%?

  1. 7.75%
  2. 8.59%
  3. 9.88%
  4. 9.50%

Answer(s): C






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