NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Evaluating the Financial Position of Clients
Ms. Neha Kulkarni has total assets of Rs 1,20,00,000, of which Rs 70,00,000 is her residence and Rs 20,00,000 is financial assets. Her total liabilities are Rs 30,00,000. What is her net worth, and what share of net worth is financial assets?
Net worth is Rs 90,00,000 and financial assets form 22.2% of it. Net worth equals total assets minus liabilities, and Rs 20,00,000 of financial assets divided by Rs 90,00,000 gives about 22.2 percent.
- ARs 90,00,000; 22.2%Correct
- BRs 90,00,000; 16.7%
- CRs 1,20,00,000; 16.7%
- DRs 50,00,000; 40%
Explanation
Net worth = 1,20,00,000 - 30,00,000 = Rs 90,00,000. Financial assets share = 20/90 = 22.2%. Using total assets as the base gives 16.7%, which is the wrong base.
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