CWM_LEVEL_1 Practice Online

Question 1

The current dividend on an equity share of MAGADH Limited is Rs. 8.00 on earnings per share of Rs. 30.00. Assume that the growth rate of 15 per cent will decline linearly over a five year period and then stabilize at 10 per cent. What is the intrinsic value of MAGADH 's share if the investors' required rate of return is 15 per cent?

A : Rs. 196/-

B : Rs. 183/-

C : Rs. 116/-

D : Rs. 269/-

Answer: D

Question 2

What are the advantages of 100% book building?

A : Marketing of issue to wholesale bidders work out cheaper

B : Issue can be completed in single stage

C : Time lag between pricing and listing is less

D : All of the above

Answer: D

Question 3

What is the amount of deduction in relation to Tea, Coffee and Rubber development account u/s 33AB of Income Tax Act?

A : 20% of profits of such business

B : 40% of profits of such business

C : 60% of profits of such business

D : 100% of profits of such business

Answer: B

Question 4

What is the quantum of deduction allowed u/s 80U?

A : Rs. 40,000

B : Rs. 75,000

C : Rs. 60,000

D : Rs. 55,000

Answer: D

Question 5

Mr. Tiwari is the sole income earner in the family. Mrs. Tiwari is a homemaker. They are aged 40 and 36

respectively Life expectancy for both of them is another 40 years. They have no children. Other

information you have is: Current investment portfolio Rs. 20 lakhs, Estimated final expenses Rs. 1 lakh,

present annual expenses are of Rs. 4 lakhs (including Rs. 1 lakh of Mr. Tiwari's personal expenses), Mr.

Tiwari's post tax income in hand is Rs. 3.5 lakhs. Assume a post tax and post inflation rate is 4%.

Calculate the insurance requirement under the Needs Based Method?

A : Rs. 43 Lakhs

B : Rs. 42 Lakhs

C : Rs. 62 Lakhs

D : Rs. 51 Lakhs

Answer: D

Name:	Chartered Wealth Manager (CWM) Certification Level 1 Examination
Exam Code:	CWM_LEVEL_1
Certification:	AAFM Certification
Vendor:	AAFM
Total Questions:	138
Last Updated:	Apr 02, 2026

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