AAFM Exam GLO_CWM_LVL_1 Topic 4 Question 88 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 88
Topic #: 4

A portfolio manager is considering buying Rs. 1,00,000 worth of Treasury bills for Rs. 96,211 versus Rs. 100,000 worth of commercial paper for Rs. 95,897. Both securities will mature in nine months. How much additional return will the commercial paper generate over the Treasury bills?

A0.45%

B0.27%

C0.35%

D0.21%

Show Suggested Answer

Suggested Answer: A

by Geraldine at Sep 07, 2024, 03:24 PM

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Odette

2 months ago

Wow, a whole 0.27% extra on the commercial paper? Sign me up! But seriously, the portfolio manager better do their homework on these securities. Don't want to end up with a portfolio that's 'commercial-ly challenged,' am I right? Haha!

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Blythe

1 months ago

D) 0.21%

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Leatha

1 months ago

Haha, 'commercial-ly challenged' indeed! It's all about that extra return, right?

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Ty

2 months ago

C) 0.35%

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Vicky

2 months ago

A) 0.27%

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Gabriele

3 months ago

I calculated it, and I think the correct answer is D) 0.21%

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Blondell

3 months ago

I'm not sure, but I think it might be C) 0.35%

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Emmanuel

3 months ago

I disagree, I believe the answer is B) 0.27%

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Jeanice

3 months ago

Hmm, this is a tricky one. I'm going to have to go with option C, 0.35%. Sure, the commercial paper has a higher return, but you know what they say - 'higher risk, higher reward.' Gotta weigh that carefully, my friend.

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Willow

2 months ago

I'm sticking with option C. It's a balance between risk and reward that I'm comfortable with.

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India

2 months ago

I see your point, but I still think option A is the way to go. It's all about maximizing returns.

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Cary

2 months ago

I disagree, I believe option C, 0.35%, is the right answer. It's important to consider the risk involved.

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Onita

2 months ago

I think option A, 0.45%, is the better choice. It's always good to go for the higher return.

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Gilma

3 months ago

Okay, let's see... 0.45% seems like the correct answer here. Gotta love those juicy commercial paper returns! Though I have to say, the portfolio manager better have a good handle on the risk profile of these securities. Wouldn't want any unexpected surprises, am I right?

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Ruth

3 months ago

Yeah, but we should also consider the risk involved. It's important to have a balanced portfolio.

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Chaya

3 months ago

I think it's 0.45% too. Commercial paper can be a good choice for higher returns.

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Freeman

3 months ago

I think the answer is A) 0.45%

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Renea

3 months ago

Ah, a classic dilemma! Treasury bills or commercial paper? Personally, I'd go for the commercial paper. It's like choosing between a boring old savings account or a slightly riskier but potentially more rewarding investment. Live a little, you know?

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Shawnda

2 months ago

A) 0.45%

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Rebecka

3 months ago

B) 0.27%

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