AWMA Practice Exam II Questions and Answers – Updated 2024
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Course
Awma
Institution
Awma
AWMA Practice Exam II Questions and
Answers – Updated 2024
Using the capital asset pricing model, what is the expected return for a stock where its beta is
1.20, the risk-free rate is 4%, and the market rate of return is 10%? (Set calculator for four
decimal places to reduce rounding error.)
...
C)The plan generally need not comply with either the disclosure or reporting requirements of
ERISA.
D)The plan must comply with the disclosure requirements, but not the reporting requirements
under ERISA. - Answer✔✔-C
Unfunded excess benefit plans need not comply with ERISA disclosure or filing requirements;
however, excess benefit plans that are funded do need to comply.
Top-hat plans and SERPs also are subject to some reporting and disclosure requirements under
ERISA.
Which statement is correct regarding federal transfer taxation?
A)Use of the estate tax marital deduction exempts the subject property from further transfer
taxation.
B)Direct payment of tuition expenses to an educational institution by a decedent's estate for the
benefit of a surviving child is exempt from transfer taxation.
C)The generation-skipping transfer tax (GSTT) can be applied to transfers of wealth between
parties who are not related to each other.
D)The gift tax is tax inclusive. - Answer✔✔-C
*If the transferor and transferee are not related to each other in any way, the GSTT can still
apply if the transferee is more than 37.5 years younger than the transferor.
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