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AAFM Exam CWM_LEVEL_2 Topic 2 Question 85 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam
Question #: 85
Topic #: 2
[All CWM_LEVEL_2 Questions]

Section C (4 Mark)

Read the senario and answer to the question.

Nimita had invested Rs. 3 lakh on 2nd May 2004 in an Equity MF when the NAV was Rs. 12.58 per unit she opted for divided payout option and received dividends paid by the scheme at 12% each on 18th Aug 2004, 20th Nov 2005, 15th Apr 2007 and on 16th Jun 2008, the dividend cum NAV per unit was Rs. 12.95, Rs. 13.05, Rs. 13.99, and Rs. 14.68 and the latest NAV of the fund is Rs. 16.68 per unit. Nimita wants to know the rate of return she got on this investment. The same is ________. (Please ignore charges and taxes if applicable)

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Suggested Answer: C

by Tashia at Aug 23, 2024, 02:25 PM

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Wade
7 days ago
Ah, the classic 'Nimita and her Equity MF' question. I remember this one from my last exam. Time to put on my 'financial analyst' hat and work through this. Yep, definitely option C - 11.48% p.a.
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Lyla
10 days ago
Hold on, did anyone else notice the 'latest NAV' is higher than the 'dividend cum NAV' on the last payment? That's fishy. I'm going with D - -10.78% p.a., just to be safe.
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Shala
10 days ago
This question is giving me flashbacks to my accounting class. Gotta break out the calculator and crunch those numbers. Hmm, I think C is the way to go - 11.48% p.a. Fingers crossed!
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Phil
12 days ago
Woah, that's a lot of numbers to keep track of! But I think I've got it. The key is to calculate the total return, including the dividends. I'm going with option A - 12.36% p.a.
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Jordan
2 days ago
That's correct! Taking into account the dividends, the rate of return is indeed 12.36% p.a.
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Diane
5 days ago
Nimita's rate of return on the investment is 12.36% p.a.
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Roslyn
22 days ago
Sure, I took into account the dividends received and the increase in NAV over the years to calculate the rate of return.
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Destiny
24 days ago
Hmm, the question gives us all the details we need. I'm pretty confident that the correct answer is C, 11.48% p.a. Nimita seems to have done well with this investment.
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Alpha
3 hours ago
I believe it's B) 4.88% p.a.
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Meaghan
2 days ago
I think the answer is A) 12.36% p.a.
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Jerry
1 months ago
Okay, let's see. Nimita invested Rs. 3 lakh, got dividends, and the current NAV is Rs. 16.68. This sounds like a pretty straightforward calculation. I'll go with option C - 11.48% p.a.
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Tenesha
17 days ago
User 2
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Kandis
18 days ago
User 1
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Shala
1 months ago
Hmm, I see. Can you explain your calculation?
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Roslyn
1 months ago
I calculated it differently, I believe it's C) 11.48% p.a.
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Shala
1 months ago
I think the answer is A) 12.36% p.a.
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