AAFM GLO_CWM_LVL_1 Exam
Chartered Wealth Manager (CWM) Global Examination (Page 5 )

Updated On: 7-Feb-2026

Mixed economy refers to.....

  1. Where both the public and private sector play a dominant role in the running of the country's economy.
  2. Where economic decision and inputs are made by the free trading market
  3. Where economic decisions and inputs are made by the government through economic planning .
  4. All of the above

Answer(s): A



Consider two bonds, X and Y. Both bonds presently are selling at their par value of Rs.1000. Each pays interest of Rs.150 annually. Bond X will mature in 6 years while bond Y will mature in 7 years. If the yields to maturity on the two bonds decrease from 15% to 12%:

  1. Both bonds will increase in value, but bond X will increase more than bond Y
  2. Both bonds will decrease in value, but bond X will decrease more than bond Y
  3. Both bonds will increase in value, but bond Y will increase more than bond X
  4. Both bonds will decrease in value, but bond Y will decrease more than bond X

Answer(s): C



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

  1. TRUE
  2. FALSE

Answer(s): B



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

  1. [(the risk-free rate) + (beta of the security)] x (market risk premium)
  2. (the risk-free rate) + [(variance of the security's return) x (market risk premium)]
  3. (the risk-free rate) + [(security's beta) x (market risk premium)]
  4. (market rate of return) + (the risk-free rate)]

Answer(s): C



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

  1. ETFs provide exposure to an Index or a basket of securities that trade on the exchange like a single stock
  2. ETFs can be bought and sold on the exchange at prices that are usually closer to the actual intra ­ day NAV of the scheme
  3. ETFs trade very close to their actual NAVs
  4. Intra Day trading of ETFs is very expensive

Answer(s): D



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