CWM_LEVEL_2

CWM_LEVEL_2 practice questions, page 6 of 7, with answer review and explanations.

Question 26

An Agreement entered into between the seller and buyer for transfer of the right/ownership of the property on an outright sale/purchase is known as

  1. Lease / Tenancy Agreement
  2. Development Agreement
  3. Agreement for Sale
  4. Indemnity Bond

Question 27

Mr. Mishra is working in a reputed company and earning Rs. 5,00,000 p.a. and is now 50 years old. He has invested Rs. 2,50,000 in an annuity which will pay him after 5 years a certain amount p.a. at the end of every year for 10 years. Rate of interest is 8% p.a. Calculate how much he will receive at the end of every year after 5 years?

  1. Rs. 4,403
  2. Rs. 53,927
  3. Rs. 3,67,332
  4. Rs. 54,743

Question 28

What deals with the double-edged enigma of why individuals like dividends (in developed countries where dividends are taxable) and why this method of income distribution persists in light of quite burdensome double taxation?

  1. Theory of Limited Arbitrage
  2. Equity Premium Puzzle
  3. Present-Biased Preferences
  4. Dividend Puzzle

Question 29

Who among the following investors attempt to determine the potential success of, say an investment in company A by contextualizing the venture in a familiar, easy to understand classification scheme?

  1. Sample Size Neglect
  2. Base Size Neglect
  3. Availability Bias
  4. Regret Version

Question 30

Mr. Sharma invested Rs. 2,00,000 in an investment that gives Rs. 40,000 for the first 4 years, and Rs. 60,000 for next 3 years. If the discount rate is 12%, calculate the present value of these cash flows?

  1. Rs. 18230.34
  2. Rs. 16543.45
  3. Rs. 14329.34
  4. Rs. 13078.4