AAFM CWM_LEVEL_2 Quiz 2 Topic 2 Questions 6-10

Question: 1

Section A (1 Mark)

For a ''single income family'' priority is on

AProtecting income via a term plan

BInvesting in commodities to grow wealth

CInvesting in Mutual Funds to grow wealth

DNone of the above

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Question: 2

Section A (1 Mark)

During ''Teen age years'' life stage, typical asset allocation should be

A25% equities, rest in fixed income instruments

B50% equities, rest in fixed income instruments

C75% equities, rest in fixed income instruments

DNone of the above

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Question: 3

Section A (1 Mark)

''Accumulation'' is the age between ________

A0-25

B25-55

C55-75

D75 or above

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Question: 4

Section B (2 Mark)

If an investor determines that next year's earnings estimate is Rs2.00 per share and the company subsequently falters, the investor may not readjust the Rs2.00 figure enough to reflect the change because he or she is ''anchored'' to the Rs2.00 figure. This is not limited to downside adjustments---the same phenomenon occurs when companies have upside surprises

Which of the following Biases have been exhibited by the investor?

ARepresentative bias

BAnchoring and Adjustment Bias

CFraming bias

DLoss Aversion bias

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Question: 5

Section A (1 Mark)

During ''Financial Independence'' life stage, typical asset allocation should be

A25% equities, rest in fixed income instruments

B50% equities, rest in fixed income instruments

C75% equities, rest in fixed income instruments

D100% equities

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AAFM CWM_LEVEL_2 Quiz:2 Topic:2 Questions:6-10