Free AAFM CWM_LEVEL_1 Exam Questions

Become AAFM Certified with updated CWM_LEVEL_1 exam questions and correct answers

Page: 1 / 28

Total 138 Questions | Updated On: Mar 07, 2026

Add To Cart

Question 1

Deductions under section 54 are allowed from

A : oss Total Income

B : ng Term Capital Gain

C : oss total income exclusive of long-term capital gain as well as short-term capital gain

D : t Total Income

Answer: C

Question 2

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 : . 196/-

B : . 183/-

C : . 116/-

D : . 269/-

Answer: D

Question 3

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 : . 43 Lakhs

B : . 42 Lakhs

C : . 62 Lakhs

D : . 51 Lakhs

Answer: D

Question 4

Statement I: Financial risk is associated with a firm's sources of financing.

Statement II: The use of financial leverage is the source of financial risk

A : atement I is correct.

B : atement II is correct

C : th statements are correct.

D : th statements are incorrect.

Answer: B

Question 5

The principle of ensures that an insured does not profit by insuring with multiple insurers

A : brogation

B : ntribution

C : urance

D : demnity

Answer: B

Page: 1 / 28

Total 138 Questions | Updated On: Mar 07, 2026

Add To Cart