NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Evaluating the Financial Position of Clients
Meena Iyer has total assets of Rs 80 lakh, of which Rs 50 lakh is her house, and total liabilities of Rs 20 lakh. Her financial assets are Rs 22 lakh. What is the ratio of her net worth to total assets?
The ratio is 75 percent. Net worth equals total assets of Rs 80 lakh minus liabilities of Rs 20 lakh, which is Rs 60 lakh, and dividing by total assets of Rs 80 lakh gives 0.75.
- A25%
- B75%Correct
- C60%
- D37.5%
Explanation
Net worth = 80 - 20 = Rs 60 lakh. Ratio = 60/80 = 75%. 25% is the liabilities-to-assets ratio (20/80), a different measure that reflects wrong choice of numerator.
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