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AAFM CWM_LEVEL_2 Exam - Topic 6 Question 53 Discussion

Section C (4 Mark)Read the senario and answer to the question.If Mrs. Deepika, a conservative investor, has Rs. 50, lakhs today that she could invest for the next three months in a three month bank CD or in a stock .The bank CD offers a guaranteed return 6 % over the three-month period. Alternatively she thinks the price of the stock will rise by 5% over the next months. She is confused in taking the decision. Guide her in trade off between return and risk so that she makes a decision in choosing investments?
B) The future price of the stock is uncertain, her return from investing in this stock is also uncertain. The return could be less than 5% and might be even negative. But in Bank CD return is guaranteed. So as a conservative investor she should decide of invest in the Bank CD.
A) As the return on stock is higher in next 3 months she should decide to invest in stock.
C) For making a balance trade off between return and risk she should invest 50% in each investment
D) Option B and C

AAFM CWM_LEVEL_2 Exam - Topic 6 Question 53 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam
Question #: 53
Topic #: 6
[All CWM_LEVEL_2 Questions]

Section C (4 Mark)

Read the senario and answer to the question.

If Mrs. Deepika, a conservative investor, has Rs. 50, lakhs today that she could invest for the next three months in a three month bank CD or in a stock .The bank CD offers a guaranteed return 6 % over the three-month period. Alternatively she thinks the price of the stock will rise by 5% over the next months. She is confused in taking the decision. Guide her in trade off between return and risk so that she makes a decision in choosing investments?

Show Suggested Answer Hide Answer
Suggested Answer: B

by Refugia at Dec 24, 2022, 08:40 PM

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Glory
10 months ago
Really? 5% on stocks seems too optimistic to me.
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Linn
10 months ago
I think splitting the investment is a smart move!
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Nydia
11 months ago
Definitely go for the Bank CD, no risk involved.
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Mari
11 months ago
But the stock could surprise us and go higher than 5%!
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Amos
11 months ago
Bank CDs are safer, guaranteed returns are a big plus!
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Royal
11 months ago
I’m a bit confused about the stock's potential. It could go up, but it could also go down. I lean towards option B, but option D sounds interesting too.
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Gretchen
11 months ago
I practiced a similar question before, and I think the guaranteed return from the bank CD is really important for someone like Mrs. Deepika. Option B seems safest.
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Fannie
11 months ago
I’m not entirely sure, but I feel like option C could be a good compromise between risk and return. Maybe splitting the investment would balance things out?
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Kris
11 months ago
I remember discussing how conservative investors typically prioritize guaranteed returns, so I think option B makes sense for Mrs. Deepika.
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Leonora
11 months ago
Okay, let me think this through step-by-step. The question is asking about the right to have data corrected, amended, or deleted. That sounds like it's describing individual participation, where data subjects can actively engage with their personal data. I'm going to go with option D.
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Alease
11 months ago
This looks like a straightforward statistical question. They want the most precise frequency of serious complications.
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Sue
11 months ago
The Direct Debit Cancellations runs on the same VM as the Email Poller, so that's just one more license. And the Onboarding Reporting runs when the Direct Debit Cancellations completes, so that's included in the previous one.
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Micaela
12 months ago
Okay, I think I've got this. The key is to remember that the 'parameters' directive in the Jenkinsfile takes precedence over the 'Project is parameterized' settings in the job configuration. I'll make sure to select the options that reflect that.
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