Free GLO_CWM_LVL_1 Exam Braindumps (page: 6)

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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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