AAFM Exam CWM_LEVEL_2 Topic 5 Question 90 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam

Question #: 90
Topic #: 5

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?

ARs. 13.17%

BRs. 12.90%

CRs. 11.59%

DRs. 12.57%

Show Suggested Answer

Suggested Answer: B

by Mauricio at Sep 12, 2024, 11:50 PM

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Hortencia

2 months ago

D) Rs. 12.57% - this is the only answer that makes sense to me. I hope the grader has a good sense of humor, because I'm going to add a little joke about compound interest to my answer sheet.

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Georgeanna

2 months ago

Wait, is this a trick question? I'm going to go with B) Rs. 12.90%. Gotta keep the examiner on their toes, you know?

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Raul

2 months ago

I'm going with C) Rs. 11.59%. The question seems a bit tricky, but I'm pretty sure that's the correct answer.

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Reita

2 months ago

I'm going to go with B) Rs. 12.90%. I think the overall rate of return will be closer to the rate of return of Company B since more money is invested there.

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Dorian

2 months ago

I see your point, but I still believe C) Rs. 11.59% is the correct answer. The percentages are weighted based on the amount invested.

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Blondell

2 months ago

I think it's actually D) Rs. 12.57%. Company A has a higher rate of return, so the overall rate should be closer to 15%.

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Paulene

2 months ago

I'm not sure, but I think it's between B) Rs. 12.90% and D) Rs. 12.57%

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Pete

3 months ago

I think the answer is A) Rs. 13.17%. The question gives the investment amounts and expected rates of return for each company, so we just need to calculate the weighted average of the two returns.

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