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AAFM CWM_LEVEL_2 Exam - Topic 4 Question 30 Discussion

Section C (4 Mark)Read the senario and answer to the question.Raman has invested Rs. 1,50,000, 30% of which is invested in Company A, which has an expected rate of return of 15%, and 70% of which is invested in Company B, with an expected return of 12%. What is the expected percentage rate of return?
B) Rs. 12.90%
A) Rs. 13.17%
C) Rs. 11.59%
D) Rs. 12.57%

AAFM CWM_LEVEL_2 Exam - Topic 4 Question 30 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam
Question #: 30
Topic #: 4
[All CWM_LEVEL_2 Questions]

Section C (4 Mark)

Read the senario and answer to the question.

Raman has invested Rs. 1,50,000, 30% of which is invested in Company A, which has an expected rate of return of 15%, and 70% of which is invested in Company B, with an expected return of 12%. What is the expected percentage rate of return?

Show Suggested Answer Hide Answer
Suggested Answer: B

by Graciela at May 06, 2022, 08:33 PM

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Tanesha
5 months ago
30% in A and 70% in B, so it should be straightforward!
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Cathern
5 months ago
I agree, 12.57% seems more realistic.
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Una
5 months ago
Wait, how did you get that? Sounds off to me.
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Carin
5 months ago
I think it's around 12.90%.
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Lelia
5 months ago
The expected return is calculated using weighted averages!
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Marya
5 months ago
]
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Laticia
6 months ago
{
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Regenia
6 months ago
},
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Terrilyn
6 months ago
"Right! So if I apply 30% at 15% and 70% at 12%, I should get one of these answers. I just can't remember if it’s supposed to be summed up or something else."
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Alline
6 months ago
}
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Terrilyn
7 months ago
"I feel like I got confused with the expected return calculations in class. Didn’t we have an exercise where we had to apply different percentages on different amounts? Maybe it works the same here?"
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Patrick
7 months ago
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Kimbery
7 months ago
},
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Terrilyn
7 months ago
"Yeah, I remember similar practice questions. I wish I had a better grip on the formula for expected returns; it could be tricky sometimes. Was it just the weights multiplied by their returns?"
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Cathrine
7 months ago
{
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Brittni
7 months ago
},
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Terrilyn
8 months ago
"I think this one is about calculating the weighted average return, right? But I'm not completely sure how to properly apply the percentages here."
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Luis
8 months ago
{
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Tran
8 months ago
[
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Ruby
8 months ago
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Jackie
8 months ago
The combined ratio is the sum of the loss ratio and expense ratio, so the correct answer is B. I feel good about this one - the definitions of these key insurance metrics are pretty straightforward.
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Shelia
8 months ago
Hmm, I'm a bit confused. The question mentions a few different timelines, like 3 years, 1.5 years, and 4.5 years. I'll need to carefully analyze all the details to determine the expected time of delivery.
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Solange
8 months ago
This looks like a straightforward question about the types of nodes in an E-MapReduce cluster. I'll carefully review the options and choose the one that best fits the description.
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Chara
9 months ago
The bid price makes the most sense to me. That's the price the investor can sell the security to the market maker for.
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