Calculate expected rate of return on the following portfolio?
Weight of X and Y in the portfolio is 50% and 50% respectively.
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.
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]
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?
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?
A trust not created by a will can be revoked only
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?
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.
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?
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?
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.
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]
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)?
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?
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.?
The following parameters are available for four mutual funds:
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/-.
Calculate the variance (%2) from the data given below:
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.?
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_______
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.
Which assets are totally except from wealth tax?
Given the following information what is the expected return on the portfolio of two securities where both are held in equal weights?
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?
A portfolio consists of 3 securities.
What is the standard deviation of the portfolio?
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.
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?
A stock earns the following returns over a five year period:
What is the standard deviation of returns for the stock?
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.
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.
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.
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.?
Which of the following are the agency functions of a Commercial Bank?
The minimum service required for entitlement to payment of gratuity under the Act, in case of an employee leaving service by death or incapacitation is
Which of the following statements is/are not true?
Which one of the following is/are correct?
Which of the following can be described as involving direct finance?
Identify the placement techniques in the following statements:
The first Mutual fund to offer Sarahia complaint fund IS
Which of the following statements are correct?
Ram born in 1950 has a life expectancy at birth of 65 years. Sita his wife born in 1955 has a life expectancy at birth of 70 years. Assuming that the life expectancies have not changed. Ram is planning to buy an annuity to be paid to him or his wife till anyone of them is alive. Assuming Ram will retire on attaining age 58 i.e. in 2008, what should be the time period of the annuity?
An investor buys 200 units of a Mutual Fund scheme having a reinvestment option at Rs.10.5 on Jan 6, 2011. On June 30, 2011 scheme declares a dividend @10%. The ex-dividend N.A.V. was Rs.10.25. On March12, 2012 the fund N.A.V was Rs.12.25. Calculate CAGR?
The government regulates financial markets for three main reasons:
Payment of Gratuity Act 1972 is applicable to
A mutual fund that invests in Indian Equities, foreign equities, Indian Corporate Bonds, Indian Government Gilts is subject to the following risks?
Ram is working in Rashid Enterprises, a proprietorship firm.During his working hours Ram was injured seriously. Due to this injury Ram was hospitalized for six months. Ram is the only bread winner of his family. Ms. Rashid, the proprietor of Rashid Enterprises is liable to pay damages to Ram. Under which of the following policy Rashid can protect himself from this liability?
Calculate Gross Annual Value where Gross Municipal Value is Rs.120, Fair Rent is Rs.105. Actual rent receivable is Rs.100& Standard Rent is Rs.125
An employee benefit plan can generally help in accomplishing all of the following items except:
Income received in India in previous year is taxable in the hands of:
As a CWM you are considering the following bond for inclusion in the fixed income portfolio of your client:
What will be the duration of this bond? and What will be the effect of the changes on the duration of the bond if the coupon rate is 6% rather than 9%?
What an employee should check in his retirement benefit plan offered by the employer?
Calculate age nearer birthday, last birthday and next birthday in case where date of proposal was 28-03-2007 and date of birth was 30-09-1969.
A contract is said to be caused by coercion when it is obtained by:
Stock A & B are positively correlated with a correlation co efficient of .75. When stock A moves up by 12%, how will stock B perform?
If the reserve ratio is 5%, what is the size of credit multiplier?
The following parameters are available for two mutual funds:
Calculate Sharpe measure?
Which of the following is an aspect of the first principle underlying Supervisory Review Process in Basel framework?
Risk free rate of return is 8%, expected market premium is 15% and Beta of security is 0.80. What is the expected rate of return of the security?
Expenses are 10% of the gross (office) premium. Pure premium is Rs. 200. Calculate office premium.
Mr. Sahil has two daughters and is in receipt of education allowance of Rs 200pm for each of them. What would be the taxable allowance in the hands of Mr. Sahil for the full FY.
How much should one deposit today in a bank account paying interest compounded quarterly if you wish to have Rs. 50000 at the end of 24 months, if the bank pays 8% annually?
What would be the taxable value added in Dr. Vijay Mohan’s income for Gratuity receipt of Rs. 8,00,000 at the time of retirement. He is covered under the Payment of Gratuity Act 1972. He retired after 28 years of service with monthly salary of Rs. 40000 p.m. Assume Income Tax provisions pertaining to AY 2011-12 would be applicable at the time of retirement?
Which one of the following statements is/are correct?
Consideration' under the law is a return promise to:
A will that is not valid in India except in the case of privileged wills or in the case of Mahomedans
Deduction u/s 80U in case of permanent physical disability (including blindness) allowed to:
In which year can the subscriber to a PPF account take the first loan from the opening of the account?
Gilt schemes are a type of
During “Building the foundation” life stage, we learn about _______
Duration of National Savings Certificate is
If a typical market basket of goods and services cost Rs 120 in 1975, the base year, and Rs 180 in 1985, the price index in 1985 would be__________
During inflationary period, nominal interest rates are ________ than real interest rates.
IMF has _____ directors
The Unit Banking system is prevalent in
Which portion of his property can a muslim normally be guest according to muslim personal law?
P Ltd sets the target to produce 1000 tones of steel during the next six months to recover the cost but there is a possibility that due to strikes and lockouts the targeted output may not be archived. What type of risk is associated with the production process?
Investment in FCNR may be made through ________.
Recurring expenses are the lowest for:
The economic environment covers following factors..........
Minimum number of independent directors on the board of asset Management Company is
According to the Gordon model, the discount rate used by the investors exhibits what type of relationship with the retention rate?
A UHNW segment client has investible assets worth of
If the slope of the Security Market Line is zero, which of the following is/are true?
Speculative risk can result in
A testator sometimes make two wills one relating to his property in his native country and other relating to his property in some foreign country this type of will is called
Short-term capital gain arising for the transfer of equity shares and units of equity oriented fund shall be taxable
A firm’s earnings decline because of a strike, this is an example of:
Arun started a 20-year term insurance policy. Once established, when, if at all, is the insurer next entitled to ask him for proof of continuing good health?
RBI has stated that KYC of banks should incorporate the following elements __________.
Banking Ombudsman Scheme is:
Deduction under section 80C to 80U is allowed from:
In ________, the values exchanged by the contracting parties may not necessarily be equal
Narrow Banking refers to
Which of the following statement is not true?
Onshore wealth management involves ____________
Minimum number of employees in an establishment for it to come under the purview of the Payment of Gratuity act is ______
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
Saurabh Gulati was thinking of acquiring some shares of AB ltd. The expected rate of return is as follows:
Compute the expected return on the investment?
Loss of a closely held company cannot be carried and set off unless on the last day of the previous year in which the loss was incurred and as on the last day of the previous year in which such loss is set off, at least:
The legal heir of the deceased who receives family pension is allowed a standard deduction from such family pension received to the extent of:
Which school is prevalent all over India
Cash credit is treated as out of order if
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.
Which of the following is not true for Index Funds ?
A trust is extinguished if
Government has changed certain industries related regulation in Parliament, it is an example of:
Any amount payable and the amount of refund due under the Income Tax Act,1961
shall be rounded off to the nearest multiple of.......... ?
What is ‘Mudharabah’
What is a valuation date?
What is the minimum paid up capital needed to form a public limited company?
Which of the following is/are the role of Investment Bankers?
X, a shopkeeper says to Y, who manages his business – “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?
Document required to open a bank account is/are
Which of the following costs best describes the cost of foregone income that results from making an economic decision to use funds to purchase a piece of equipment?
X Ltd. has failed to remit the tax deducted at source from annual rent of Rs. 6,60,000 paid to Mr. A for its office building. Said rent is —
The market risk premium is defined as ___________
A good wealth management plan must include an analysis of all of the following EXCEPT
Which of the following statements with regard to Human Capital is/are correct?
In PPF the term/duration of the account is 15 years from :
An administrator is appointed if there is no nominated:
……………………is a gift in the form of a single transfer to the same person of several things of which one is and the others are not burdened by an obligation, the done can take nothing by the gift unless he accepts if fully.
Which of following statement is/are true in relation to PPF account?
Hybrid deposit is a type of
The trust is empty at creation during life and will transfer the property into the trust at death
Unabsorbed depreciation can be carried forward for ____________.
Which act regulates the name of the company?
In the BASEL framework, first pillar stands for:
Tax exemption limit for the lump sum received towards Leave encashment on retirement is at _______________
Encashment of leave during service tenure is
Find Beta of security X if expected market premium is 15%, risk free return is 7% and expected return of security X is 20%?
CAMELS framework was first used in _______.
Ms. Shweta wants to achieve the goal of higher education of her daughter after 15 years. She estimates that the funds required would be 30 lacs at then costs. She wants to invest monthly for this goal. You as a Wealth Manager suggest an asset allocation of 80% in Equity and 20% in Debt for 14 years and shifting the entire amount to liquid funds in the last year where the expected returns would be 6% p.a. If the returns in equity and debt funds are 14% and 8.50% respectively calculate the amount that needs to be invested in Equity and Debt Each Month.
The relevant banking ombudsman for filing a complain regarding credit card with central processing is the one under whose jurisdiction __________.
Mukul purchased a flat on 1-4-1996 for Rs. 10,00,000/-. He sells the same flat on 1-10-2006 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).
A borrower defaults on a secured loan of Rs. 50,000. The underlying security is worth Rs. 60,000. Which of the following is true? "
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
You are given the following set of data:
Historical Rate of Return
Determine the arithmetic average rates of return and standard deviation of returns of the NSE over the period given.
Rahul had invested in an open ended Mutual Fund when the NAV of the fund was Rs. 10. After 6 months the NAV was Rs. 12. Calculate the annualized percentage change in the fund ignoring all charges.
The difference between aggregate disbursements net of debt repayments and recovery of loans and revenue receipts and non debt capital receipts is called:
Rajiv buys a growth oriented non dividend paying share for Rs. 200 and 4 years later sells it for Rs. 350. The CAGR is____
A weaker Rupee benefits _____ and hurts _____
Which one of the following statements is/are correct?
The relevant banking ombudsman for filing a complain regarding credit card with central processing is the one under whose jurisdiction __________________?
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]
Any income chargeable under the based “Salaries” is exempt from tax under Section 10(6)(viii), if it is received by any non resident individual as remuneration for services rendered in connection with his employment in a foreign ship where his total stay in India does not exceed a period days in that previous year.
As a CWM® you recommended Mr. Raj Malhotra to put his money in Asset A offering 15% annual return with a standard deviation of 10%, and balance funds in asset B offering a 9% annual return with a standard deviation of 8%. Assume the coefficient of correlation between the returns on assets A and B is 0.50. Calculate the expected return after 1 year and standard deviation of Mr. Raj Malhotra’s portfolio
There are two parties to Power of Attorney, namely, Donor and Donee.
Which of the following is a reasonable assumption to make about the understanding of a client on the Wealth planning Process?
Dharampal has let out his house property at monthly rate of Rs. 12000. He has paid Rs.3500 as annual municipal tax. He wants to know the Net Annual value of his house at Bhuj for AY 2011-12. The Municipal value of the house is Rs. 90,000, Fair rent Rs. 1,40,000, Standard rent Rs. 1,20,000. The house was vacant for one month during the previous year 2010-11 and the rent has not changed since then.
Broker dealer model is more prevalent in
Which of the following are the necessary contents of a will?
Which one of the following is/are correct?
Major phases of budgeting process are:
Calculate the Net worth of Mr. Surinder Nath with the following financial details as:
A trust is created by a son, the Settlor, for the survival expenses of his retired parents each having equal beneficial interest. Both husband and wife have separate fixed pension of Rs.35,000 per month and Rs. 20,000 per month, respectively. The trust property has generated a net annual value of Rs. 5.12 lakh in the previous year 2012-13. The trustee as well as the Settlor is in the 30% tax bracket. Find the tax payable by the trustee as representative assessee.
Mr. Patel has analyzed a stock for a one-year holding period. The stock is currently quoting at Rs 80/- and is paying no dividends. There is a 50-50 chance that the stock may quote Rs 90 or Rs 110 by year-end. What is the expected return on the stock?
Once the child reaches the vesting age, i.e. the age when the life assurance commences, he or she can claim cash option i.e. he can opt to receive the premium amount paid so far under the policy in case the policy is discontinued. This is possible under:
Derive policy cost per thousand with following data:
