AAFM Exam CWM_LEVEL_2 Topic 2 Question 85 Discussion

Actual exam question for AAFM's CWM_LEVEL_2 exam

Question #: 85
Topic #: 2

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)

A12.36% p.a.

B4.88% p.a.

C11.48% p.a.

D-10.78% p.a.

Show Suggested Answer

Suggested Answer: C

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

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Wade

2 months 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

2 months 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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Lou

2 months ago

Let's analyze the scenario again before making a final decision.

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Thurman

2 months ago

I see your point, but I still believe option D is the most logical one.

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Venita

2 months ago

I think option A might be the safer choice, considering the increase in NAV over time.

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Keith

2 months ago

Are you sure about choosing option D? It seems like a risky move.

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Shala

2 months 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

2 months 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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Danica

2 months ago

Great job on the calculation! Option A is the correct answer.

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Jordan

2 months ago

That's correct! Taking into account the dividends, the rate of return is indeed 12.36% p.a.

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Diane

2 months ago

Nimita's rate of return on the investment is 12.36% p.a.

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Roslyn

3 months 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

3 months 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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Terry

1 months ago

I'm not sure, but I think it might be D) -10.78% p.a.

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Alverta

2 months ago

I agree with the user comment, C) 11.48% p.a. seems correct.

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Alpha

2 months ago

I believe it's B) 4.88% p.a.

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Meaghan

2 months ago

I think the answer is A) 12.36% p.a.

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Jerry

3 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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