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AAFM Exam GLO_CWM_LVL_1 Topic 2 Question 94 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam
Question #: 94
Topic #: 2
[All GLO_CWM_LVL_1 Questions]

Rahul had invested in an open ended Mutual Fund when the NAV of the fund was Rs. 10. After 6 months the NAV was Rs. 12. Calculate the annualized percentage change in the fund ignoring all charges.

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Suggested Answer: C

by Whitley at Oct 18, 2024, 03:04 AM

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Noel
11 hours ago
I'm inclined to go with option B, 36.64%. The formula for annualized percentage change can be a bit tricky, but I think I've got it right this time.
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Evette
1 days ago
Hmm, I got the same result as Leontine. 40% seems like the correct answer. Though I'm curious, did Demetra invest in a mutual fund or a crystal ball?
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Leontine
2 days ago
Okay, let me think through this step-by-step. If the NAV went from 10 to 12 in 6 months, that's a 20% increase. Annualizing that would give 40%, which is option A.
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Renato
12 days ago
I also calculated it and got the same answer, so I think we are correct
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Jolene
16 days ago
I agree with Stacey, the annualized percentage change can be calculated using the formula [(NAV final / NAV initial)^(1/n) - 1] * 100
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Demetra
16 days ago
The annualized percentage change seems to be quite high. I'm not sure if I'm missing something in the calculation.
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Stacey
19 days ago
I think the answer is B) 36.64%
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