aafm GLO CWM LVL 1 Exam Questions
Questions for the GLO CWM LVL 1 were updated on : Nov 21 ,2025
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Question 1
The probability distribution of the rate of return on ABC stock is given below:
What is the standard deviation of return?
- A. 11.40%
- B. 12.90%
- C. 10.50%
- D. 13.50%
Answer:
B
Question 2
A portfolio manager is considering buying Rs. 1,00,000 worth of Treasury bills for Rs. 96,211 versus
Rs. 100,000 worth of commercial paper for Rs. 95,897. Both securities will mature in nine months.
How much additional return will the commercial paper generate over the Treasury bills?
- A. 0.45%
- B. 0.27%
- C. 0.35%
- D. 0.21%
Answer:
A
Question 3
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.
- A. Rs 281500
- B. Rs 275500
- C. Rs 269000
- D. Rs 265400
Answer:
C
Question 4
Calculate the death claim amount if the assured dies in the 25th year of the policy. Money back
policy with SA of Rs. 50000. Term is 25 years. Survival benefits of 10% each paid at the end of 5th ,
10th, 15th, and 20th years. Accrued bonus of Rs. 500 per thousand of SA.Interim bonus of Rs. 75 per
1000 of SA.
- A. 50000
- B. 57500
- C. 100000
- D. 107500
Answer:
D
Question 5
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?
- A. 19803.43
- B. 19174.92
- C. 18976.24
- D. 19203.46
Answer:
B
Question 6
Vinod is projecting an income stream providing Rs. 2,000/- for first 3 months, Rs. 3,200 for next 2
months, Rs. 4,500 for next 1 month, Rs. 3,700 for next 6months and Rs. 800 for 2 months thereafter.
Please calculate the Present Value of this cash stream if rate of interest is 9%
- A. 24465.92
- B. 25817.12
- C. 24,513.72
- D. 23478.68
Answer:
C
Question 7
X furnishes the following particulars for the compilation of his wealth-tax return for assessment year
2012-13.
- A. Rs. 2 lakh
- B. Rs. 9.50 lakh
- C. Rs. 17 lakh
- D. Rs. 9 lakh
Answer:
A
Question 8
Mr. Bose runs his Handicrafts business. His net proceeds after deducting both the business expenses
and living expenses are Rs. 6,00,000 p.a, which will increase at the rate of 5%. He is a bachelor and
don’t intend to start any family in future either. Since he don’t have any family obligations, he wants
to sell off his business after ten years and buy a home in foothills of Himachal.
He expects to sell the business for a good amount and put 40% of the proceeds in buying the house
and setting up a retirement corpus with the rest of amount to pay off his post retirement expenses.
He is philanthropic by nature and thus want to save the net revenues from his business to form a
charitable hospital for poor people living in Himachal. His current living expenses are Rs. 4,00,000 p.a
which will increase in line with inflation. Inflation rate is 3% and interest rate prevailing is 6%.
As a CWM you are required to calculate:
- A. Business: Rs 4,61,82,645, House: Rs 2,77,09,587, Hospital: Rs 97,17,000
- B. Business: Rs 3,07,88,430, House: Rs 1,23,15,372, Hospital: Rs 97,17,000
- C. Business: Rs 2,77,09,587, House: Rs 2,77,09,587, Hospital: Rs 80,97,653
- D. Business: Rs 3,69,46,116, House: Rs 1,84,73,058, Hospital: Rs 97,17,000
Answer:
B
Question 9
Vinod joined on 01/01/90 in ABC Ltd. and retired on 01/01/2007.Employee paid leave encashment of
Rs. 4,00,000/-. His last drawn salary is Rs. 25000/-. His last 10 months average salary is 23500/-. He
availed 150 days leave during the service. What will be his taxable leave salary amount?
- A. 4,00,000
- B. 2,35,000
- C. 2,82,000
- D. 1,65,000
Answer:
D
Question 10
From the following information of assets assets and liabilities, the taxable wealth for:
- A. Rs 1,10,00,000 & Rs 40,00,000 respectively
- B. Rs 1,00,00,000 & Rs 40,00,000 respectively
- C. Rs 1,10,00,000 & Rs 50,00,000 respectively
- D. Rs 70,00,000 & Rs 40,00,000 respectively
Answer:
A
Question 11
Mr. Malhotra and Mrs.Malhotra aged 50 and 45 years respectively, both have a life expectancy of 35
years.
You have following information
Calculate the adequate insurance required based on need based approach.
- A. 65 lakhs
- B. 60 lakhs
- C. 54 lakhs
- D. 44 lakhs
Answer:
C
Question 12
Which of the following is/are the desirable contents of a will?
- A. I ,II and III
- B. II , III and IV
- C. I, III and IV
- D. All of these
Answer:
B
Question 13
Mr. Ravi aged 28 years is a marketing professional who earns a salary of Rs. 50000 p.m. He is very
concerned about his retirement expenses. For the same he has started saving Rs. 6000 p.m. regularly
in a bank fixed deposit paying an interest of 9.5% p.a. since the age of 23.
At the age of 38, he is thinking of buying a house on his retirement which is 25 years away.
He has estimated that the price of the house at his retirement will be Rs. 4000000. Calculate the
amount of retirement corpus accumulated by him and the extra savings he has to make at the age of
38 in order to purchase the house? (Inflation rate = 3% p.a.)
- A. Rs. 32617751 &Rs. 9281
- B. Rs. 20036777 &Rs. 6870
- C. Rs. 32617751 &Rs. 3281
- D. Rs. 20036777 &Rs. 3500
Answer:
C
Question 14
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]
- A. Rs.500000 will be taxable as short term capital gain
- B. Rs.500000 will be taxable as long term capital gain
- C. Rs.150000 will be taxable under some other head other sources
- D. Rs.150000 is not liable to tax
Answer:
C
Question 15
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. Rs. 2,47,375
- B. Rs. 2,51,823
- C. Rs. 2,54,997
- D. Rs. 2,42,320
Answer:
C