Question 1

Section A (1 Mark)

During ''Teen age years'' life stage, typical asset allocation should be

Options :

A : 25% equities, rest in fixed income instruments

B : 50% equities, rest in fixed income instruments

C : 75% equities, rest in fixed income instruments

D : None of the above

Answer: D

Question 2

Section C (4 Mark)

Mr. XYZ buys a Nifty Call with a Strike price Rs. 4100 at a premium of Rs. 170.45 and he sells a Nifty Call option with a strike price Rs. 4400 at a premium of Rs. 35.40.

What would be the Net Payoff of the Strategy?

* if Nifty closes at 4200

* if Nifty closes at 5447

Options :

A : 145.95 and -75.05

B : -35.05 and 164.95

C : 145.85 and -65.50

D : 25.05 and 154.25

Answer: B

Question 3

Section C (4 Mark)

Read the senario and answer to the question.

Mr. Mehta buys machinery for Rs. 80000 which is to be replaced after a period of two years. The replacement cost at that time will be Rs. 90000. As a Chartered Wealth Manager advice Mr. Mehta now what he should do after two year for the replacement of the said machinery?

Options :

A : He should buy the new machinery first and sells the old machine in the next financial year

B :

He should sell new machinery first and buy the old machine in the next financial year

C : He should buy and sell the machine in the same financial year

D : He should buy and sell the machine in the financial year 2011

Answer: A

Question 4

Section B (2 Mark)

A taxpayer has taxable income for 2011-12 (after deducting the personal allowance) of 75,200. None of the income is derived from savings or dividends. The income tax liability for the year is:

Options :

A : 15,040

B : 23,080

C : 30,080

D : 37,600

Answer: B

Question 5

Section C (4 Mark)

To create a common size income statement ____________ all items on the income statement by ____________.

Options :

A : multiply; net income

B : multiply; total revenue

C : divide; net income

D : divide; total revenue

Answer: D