AAFM CWM_LEVEL_2 Exam Actual Questions

Section C (4 Mark)

Read the senario and answer to the question.

Assume the following additional facts:

The Shankers have purchased a homeowner's policy (comprehensive) covering 100% of the replacement cost of their residence. This policy has a Rs. 500 deductible. Also, they have purchased a disability income policy with a 30-day elimination period and an any-occupation definition of disability.

What actions should the Shankers consider in order to improve the quality of the insurance program described above?

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Section C (4 Mark)

Read the senario and answer to the question.

Raman is considering the purchase of a office building and, as part of his analysis, from the following given data calculate the appraised value of the property using the Income Approach?

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Section C (4 Mark)

Read the senario and answer to the question.

Calculate the Solvency ratio?

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Section C (4 Mark)

Read the senario and answer to the question.

Neeraj's portfolio consist shares of company X Ltd. which is paying a dividend of Rs. 2 per share. The dividend is expected to grow @15% annual rate for 3 years, then @10% for the next 3 years, after which it is expected to grow @5% forever. What among the following would be your advice to Neeraj in case the market value of the share is Rs. 85? Assume capitalization rate to be 9% per annum

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Section C (4 Mark)

Read the senario and answer to the question.

Which one of the following statements most accurately describes the risk exposure of the Shankers' portfolio?

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