cute-exam-paper-set-2.pdf

Set 2 ENGLISH Question 1. Arrange accordingly from the highest risk fund to the lowest risk fund. i. Equity Fund ii. Money Market Fund iii. Balance Fund iv. Hedge Fund A. i, ii, iii, iv C. iii, iv, ii, i B. iv, i, iii, ii D. i, iv, iii, ii 2. T...

Set 2 ENGLISH Question 1. Arrange accordingly from the highest risk fund to the lowest risk fund. i. Equity Fund ii. Money Market Fund iii. Balance Fund iv. Hedge Fund A. i, ii, iii, iv C. iii, iv, ii, i B. iv, i, iii, ii D. i, iv, iii, ii 2. The unit trust fund that are available in the market could be designed to meet the following investor's requirement: A. Long term saving C. Retirement Fund B. Children's Education D. All of the above For queation 3 & 4, please refer to the data given below Month NAV/unit April RM0.50 May RM0.60 June RM0.70 3. Mr. Dave invested regularly for the past 3 months. His total investment is RM4,500. What is the average price of his investment? A. RM0.60 C. RM0.43 B. RM0.59 D. Rm0.56 4. How many unit Mr. Dave had by the end May? A. 5,500 C. 4,500 B. 7,643 D. 4,000 5. A 20 year old employee, who belong to Stage 1 of the client type, has very little saving but possesses low commitments and is very skeptical in investing unit trust. However he has right toleration for risk. Which of the following should he invest in? A. Growth Fund C. Income Fund B. Hedge Fund D. Balanced Fund 1 Set 2 ENGLISH Question 6. Capital Market Masterplan introduced a host of recommendations to further spur the Islamic capital market. Parts of the efforts were to enhance awareness of the Malaysia Islamic Capital Market to domestic and international levels. Which recommendation does this belong to? A. Recommendation 77 B. Recommendation 66 C. Recommendation 65 D. Recommendation 73 7. Kumpulan Guthrie Bhd launched its first international corporate bond in A. 2000 B. 1999 C. 1997 D. 2002 8. Which of the following best describes a close ended fund? A. Units are not quoted in an exchange. B. Prices are determined by the market forces of demand and supply in Bursa Malaysia. C. Prices remain unchanged throughout trading day. D. Forward pricing is practiced. 9. Which of the following propositions a UTC should not practice? A. " The market is going up, you should come in now, capital appreciation is assured". B. "If you can't invest it doesn't matter, you can always loan from the bank". C. " Invest in equity fund now, you stand a chance to win a free welcome gift". D. All of the above 10. Which of the following has the highest volatility of price? A. Bond Fund B. Aggressive Growth Fund C. Money Market Fund D. Income Fund 11. Rahim and Kajai invested RM64,000. Rahim receive returns of 8.5% per annum. As the years went by, both doubled their investment. Kajai received his returns faster by 1.27 years. What is Kajai's rate of return? A. 8.5% C. 10% B. 12% D. 17% 2 Set 2 ENGLISH Question 12. What do you understand about 1:2 unit split? A. The unit in circulation will be doubled B. The prices will be doubled C. The prices will proportionally decreased D. All the answer are incorrect 13. Which statement is correct? Fund X Fund Y 80% Equity 20% Equity 20% Fixed Income 80% Fixed Income A. if the market falls, X will be more negatively affected than Y B. If the market rises, both X & Y will be negatively affected. C. If the market falls, X will be more positively affected than Y. D. None of the above is correct 14. Mr A wants to invest RM150,000. What is the maximum amount can he borrow from the financial institution? A. RM200,000 C. RM100,500 B. RM66,000 D. RM120,000 15. The unit holders rights in UTS include the following except: A. To receive UTS annual and interim reports. B. To call meetings for unit holders. C. To receive distribution from UTS D. To change the investment portfolio. 16. Tax rate = 20% Inflation rate = 5% Rate of return = 10% Please calculate the effective rate of return after tax & inflation. A. 3% C. 10% B. 5% D. 20% 17. When comparing the performance of a fund over a period of time, a decreasing MER will indicate? A. The UTMC is not managing the total fees and expenses well. B. The UTMC is managing the total fees and expenses well. C. The NAV of the fund is rising. D. The NAV of the fund is falling. 3 Set 2 ENGLISH Question 18. One of your friends tells you, "By the time I retire in year 2020, I believe KLCI will be many times what it is today. I am happy with that. Give me a fund that can best deliver the same result". What would you recommend to him? A. Buy a growth fund because it can give him a return better than KLCI by year 2020. B. Buy a balanced fund because its investment return are less volatile than KLCI. C. Buy an index trading fund using KLCI as benchmark. D. For such a long investment horizon, don't worry buy any fund. 19. What is the meaning of liquid advantage offered by unit trust scheme? A. As liquid as cash B. Able to purchase or redeem on any business day. C. Buys more unit trust on rising and less on falling market. D. None of the above. 20. Dollar cost average is: A. Buy low sell high B. Buy high sell now C. Regular investment at a fixed amount of money D. Buy fixed unit every time 21. Mr. Ahmad made his first investment at the price of RM0.20. He puts in more money on the second investment and got 10,000 units. He made redemption a month after that and receives RM15,000 for RM0.25 per unit. How many did he invest at his first investment? A. RM15,000 C. RM5,000 B. RM10,000 D. RM20,000 22. What is the purpose of UT performance table? A. For SC to regulate the fund. B. For FMUTM to regulate the funds. C. Segregation of funds into different categories according to the fund size. D. To provide investors with the same means to monitor and evaluate the performance of the fund. 23. Islamic UT invest only in halal counter such as A. Conventional banking B. Telecommunications C. Gambling D. Alcohol 4 Set 2 ENGLISH Question 24. Which of the below describes open ended funds? A. The price fluctuates within the day. B. The fund manager has to buy back from the investor. C. Transactions are through stock broker. D. They are property trust. Question 25 & 26 are to be answered based on the following NAV cum- distribution of Funs A is RM150,000,000. Unit in circulation is 100,000,000. The fund declared distribution RM0.10 per unit, and the fund manager is charging 5% for service charge. 25. What is the NAV per unit of Fund A ex-distribution? A. RM1.50 C. RM1.40 B. RM1.45 D. RM1.38 26. What is the NAV per unit of Fund A cum-D? A. RM1.50 C. RM1.40 B. RM1.45 D. RM1.38 27. This fund invests mostly in stocks in listed companies, which emphasizes more in capital growth than fixed income and distributions. A. Equity Fund B. Balance Fund C. Bond Fund D. Money Market Fund Question 28, 29 & 30 Lump sum investment : RM100,000 Initial entry cost : 6.5% On-going management fee : 1.4% Rate of Return : 11% 28. What is the return of investment after 10 years? A. RM233,839.11 C. RM233,547.23 B. RM234,831.27 D. RM234,098.95 5 Set 2 ENGLISH Question 29. Assume that the initial entry cost decreased to 6%. What is the value of the investment after 10 years? A. RM233,839.11 C. RM235,938.96 B. RM235,089.59 D. RM234,098.95 30. How long does it take to increase the investment amount to RM200,000 with the effective rate of return from question 28? A. 4.8 years C. 7.5 years B. 6.3 years D. 7.2 years 31. The published NAV in newspaper today is RM0.65. The price at the end of the day is RM0.66. If Mr. Eddie invested RM10,000 today; how many units is he getting if forward pricing is applied. (Assume the 5% of service charge is applied) A. 14,430.02 units C. 15384.62 units B. 16,666.67 units D. 15,151.52 units 32. In Annual Report of ABC Millennium Fund, expenses incurred by the fund during the financial year: Annual Management Fee : RM3,528,673 Trustee : RM150,326 Auditor's Remuneration : RM16,300 Administration expenses : RM28,418 Average Fund Size : RM235,300,528 What is the MER of this fund? A. 1.50% C. 0.07% B. 1.58% D. 0.01% 33. Mr. Abraham invested RM5000 into ABC Growth Fund managed by ABC Unit Trust Management Bhd. Mr. Abraham now owns A. RM5000 worth of units of entitlement in the ABC Growth Fund B. RM5000 worth of shares in ABC Unit Trust Management Bhd C. RM5000 worth at direct ownership of investment portfolio held by ABC Growth Fund D. RM5000 paid up capital of ABC Unit Trust Management Bhd 34. How many times would an investor receive report/reports in a financial year? A. 1 time B. 2 time C. 3 time 6 Set 2 ENGLISH Question D. 4 time 35. Mr. A chooses Real Estate Investment Trust (REIT) that invests in real property which provides him with an opportunity to participate in property market in a way which is normally impossible for an individual investor like him as he only has RM1,000. The statements below are valid about REIT except: A. All REITs are open-end fund, and the units are not listed in the stock market. B. Returns from property comprise net rental income, plus or minus any change in the value of the property over the period. C. Units in the listed REIT can be bought and sold through stockbrokers, and UTC would not normally arrange to buy or sell units for an investor. D. The prices at which units in REIT trade on Bursa Saham will reflect the returns. 36. Besides the daily prices, the investors need to consider the distribution being declared by the fund manager when they evaluate the performance of the fund. How does this affect the NAV? A. The NAV of the fund is adjusted downward. B. The NAV of the unit of the particular fund remains unchanged. C. The NAV per units has gone up. D. The tax rate will decrease when distribution is declared. 37. A gradually decreasing MER over a period of several years indicates that A. The Fund Manager is reducing the annual management fee. B. The Management Company may be managing its operating costs efficiently for its fund size. C. The performance of the fund is getting better than previously. D. The performance of the fund is getting worse than before. Question 38 & 39 38. A distribution of RM0.04 per unit has been distributed for Fund XYZ, the NAV cum distribution was RM1,500,000 while units in circulation was RM1,000,000 units. Calculate the NAV per unit ex distribution. A. RM1.49 C. RM1.50 B. RM1.46 D. RM1.40 39. Assume that Mr. Z wants to repurchase 20,000 units of his investment in Fund XYZ after distribution. Calculate the amount that he will get from the repurchase A. RM29,800 C. RM30,000 B. RM28,000 D. RM29,200 7 Set 2 ENGLISH Question 40. For investor who is unable or unwilling to do research and analyzes investment market on his or her own, UTS is an idea way of investing. There are numbers of other significant benefits of investing that should be noted such as: I. Professional Management II. Ready access to funds III. Opportunity cost IV. Investment exposure V. Diversification A. I, II, III only B. I, II, III and IV only C. I, II, IV and V only D. All of the above 41. The major function of the Securities Commission includes I. To regulate all matters relating to unit trust industry. II. To ensure that the provisions of securities laws are complied with. III. To license and supervise all licensed persons as may be provided for under any securities law. IV. To act as a custodian of assets of UTS A. I, II, III C. II, III, IV B. I, II. IV D. IV only 42. At age 25, Unitholder C, an aggressive investor is willing to take high risk in investing in UTS B that is aggressive UTS. A few years later, Unitholder C is married with young children and he feels his personal circumstances has changed and that he prefers to invest in medium to low risk type of UTS. What is the best exercise for Unitholder C to do as a result of his changing personal circumstances? A. Repurchase Units B. Suspension C. Switch D. Cooling-Off Right 43. Technique A operates in a way which the period of ownership prior to the ex-D date is irrelevant. it is therefore possible to 'buy' a distribution entitlement for the full period by acquiring units just before the ex-D date. Technique A is known as A. Automatic Reinvestment B. Suspension C. Spread D. " Buying' a distribution 8 Set 2 ENGLISH Question 44. Dollar coat Averaging (DCA) can affect the average cost of investment. Which statement clearly explains the DCA effect? A. With fixed amount of money, investor can acquire more units in a rising market over a short term period. B. With fixed amount of money, investor can acquire lesser units in fluctuating market over long term period. C. With fixed amount of money, investor can acquire more units at lower price and fewer units at higher price which can reduce the average cost over long term period. D. With fixed amount of money, investor can acquire regular amount of units at lower price which can reduce the average cost over long term period. 45. What is the real value for single storey house costing RM75,000 today in 6 years' time with an inflation rate of 4% A. RM95,874.93 C. RM98,695.93 B. RM93,000.93 D. RM94,898.93 46. Which of the below must you NOT say to a potential investor? A. Unit trust is safe a fixed deposits. B. The market value of your capital may be lower than initially invested. C. Return in unit trust is not fixed D. You should diversify your portfolio and have some fixed deposits. 47. Which of the following best describes the equity fund? A. Mainly invest in the equity market B. Mainly invest in bond and equity market C. Mainly invest in money markets D. Mainly invest in property markets 48. To meet challenges posed by sophisticated customer, UTC must strive to do following EXCEPT A. Maintain high ethical standard B. Hard sell C. Acquire professional qualification D. Good product knowledge 49. When was FMUTM formed? A. July 1992 C. Aug 1993 B. Aug 1992 D. Aug 1994 9 Set 2 ENGLISH Question 50. UTMC uses forward pricing method when computing the selling and repurchase prices. Assuming at 9.30am today, the NAV of the fund was RM180,000,000.00 and units in circulation was 200,000,000. At the end of the day the NAV has increased to RM190,000,000.00 and units in circulation unchanged. If a customer wants to redeem today, how much is the repurchase price per unit if no repurchase fee is charged and the repurchase price is at NAV per unit. A. RM0.95 C. RM1.11 B. RM1.05 D. RM0.90 51. Which of the following charges is the fee levied by managers on investment to cover the cost of distributing the unit trust? A. Management Fee C. Trustee Fee B. Initial Service Charge D. Repurchase Fee 52. Mr. Hadi holds 5,000 units of Fund XYZ before unit split of 1:2 with an investment value of RM10,000.00. After the unit split issue, his fund XYZ account will have A. 2,500 units at investment value of RM10,000 B. 5,000 units at investment value of RM15,000 C. 7,500 units at investment value of RM15,000 D. 7,500 units at investment value of RM10,000 53. " Investment benchmark" is A. Fund management objective that selects securities based on a specifies Stock Exchange Composite Index. B. A standard measurement for comparing investment performance. C. Shifting investment portfolio from stocks to fixed-income securities. D. A strategy that entails buying low and selling high. 54. Miss Amelia spent RM25,000 last year and this year she spent RM26,125 with the same purchasing power. How much does Miss Amelia has spend if she wants to maintain it for the next year? A. RM27,301 C. RM27,250 B. RM28,001 D. RM30,350 55. If an investor secures maximum loan financing for unit trust investment, and the amount of investment on his own is RM40,000. What will be his total investment? A. RM19,701 C. RM81,212 B. RM59,701 D. RM121,212 10 Set 2 ENGLISH Question 56. _____________ introduces new licensing framework allows capital market intermediaries to hold one license to carry on any one or more regulated activities. A. Capital Market and Services Act B. Securities Commission Act C. Guideline on Unit Trust Funds D. Securities Industry Act 57. A UTS intend to increase the level of its management fees. Who must approve this change? A. The scheme's officers B. The scheme's management company C. The scheme's custodian D. The scheme's unit holders 58. Azita just brought 5,000 units of ABC Growth Fund from her UTC, Miss Anne. Who paid the initial sales charge? A. Azita B. Anne C. The fund manager of the ABC Growth Fund D. The ABC Growth Fund 59. Under whose name the assets and investments of the unit trust scheme would be held under? A. Trustee C. Investor B. UTMC D. Stock broking house 60. NAV per unit of Fund C is RM0.89, assuming there are 5% service charge and no redemption charge, how much Mr. Kumar is going to get if he redeem 5,000 units of his investment in Fund C? A. RM4,450 C. RM4,672.50 B. RM4,227.50 D. RM4,500 11 Set 2 ENGLISH Question Set 2 Answer 1. Answer B Hedge Fund is the most risky, followed by Equity Fund, Balanced Fund (which has equity exposure) and Money Market Fund. 2. Answer D Unit trust is medium to long term investment tool to meet investor's long term objectives. For question 3 & 4, please refer to the data given below Month NAV/unit April RM0.50 May RM0.60 June RM0.70 3. Answer B Total Investment = RM4,500 Total Unit = (Rm1,500/RM0.50) + (RM1,500/RM0.60) + (RM1,500/RM0.70) = 3000 + 2500 + 2142.88 =7642.88 Average price of his investment = Total investment / Total units = RM4,500 / 7642.88 =RM0.59 4. Answer A Total units for 2 months (April and May) = (RM1,500/RM0.50) + (RM1,500/RM0.60) = 3000 units + 2500 units = 5500 units 5. Answer A He or she can start building a small nest egg by investing into growth oriented UTS. Perhaps some additional risk can be taken by investing in more specialized and aggressive UTS. He or she may be able to tolerate higher volatility in investment returns over the short-term, as the focus will be on returns over the long period. (Chapter 5, page 5-7) 6. Answer D (Chapter 6, page 6-3) 7. Answer D (Chapter 6, page 6-4) 12 Set 2 ENGLISH Question 8. Answer B The price of any listed securities is determined by buyers and sellers in the market (Chapter 1, page 1-12) 9. Answer D 10. Answer B Equity UTS labeled "aggressive growth" generally invest in companies with higher capital growth potential, but with associated higher risk. (Chapter 1, page 1-13) 11. Answer C Use Rule of 72 Rahim received his returns in 8,47 years (72/8.5) Kajai = 8.47 years - 1.27 years = 7.2 years Kajai's return = 72/7.2 = 10% 12. Answer D 13. Answer A The performance of most equities is closely linked to the market performance. A rising share market will normally result in an increase in the value of units in equity UTS, and vice versa. (Chapter 1, page 1-13) 14. Answer C Maximum amount = RM150,000 X 67% = RM100,500 15. Answer D Unit holders do not have rights to decide on the investment portfolio - loss of control. (Chapter 1, page 1-5). Unitholder's rights. (Chapter 1, page 1-27) 16. Answer A Return after tax Rate of return - (Rate of Return X Tax Rate) = 10% - (10% X 20%) = 10% - 2% = 8% Effective rate of return Return after tax - inflation rate = 8% - 5% = 3% 13 Set 2 ENGLISH Question 17. Answer B A gradually decreasing MER over a period of several years indicates that a UTMC may be managing its operating costs efficiently for its fund size. (Chapter 1, page 1-32) 18. Answer C 19. Answer B One of the benefits of UTS is ready access to funds, the investment can easily be sold within a short period time. UTS provide this benefit, as units can be bought and sold readily through UTMC, IUTA and UTC. 20. Answer C The concept refers to the systematic and regular investment of a fixed amount of money, irrespective of the price level of the investment at the time the investment is made. (Chapter 3, page 3-30) 21. Answer B Number of units held during redemption RM15,000/RM0.25 = 60,000 units Second investment = 10,000 units First investment = 60,000 units - 10,000 units = 50,000 units Amount Invested = 50,000 units X RM0.20 = RM10,000 22. Answer D UTS performance tables published by research houses endorsed by FMUTM can be a useful tool for monitoring investment performance. (Chapter 1, page 1-37) 23. Answer B (Chapter 6, page 6-13) 24. Answer B Investor's sales and repurchases of units in an open ended fund are transacted daily within UTMC, often with the assistance of UTC. (Chapter 1, page 1-12) 25. Answer C NAV/unit cum-D = NAV/unit in circulation = RM150,000,000/100,000,000 = RM1.50 NAV per unit ex-D = NAV/unit cum-D-distribution = RM1.50 - RM0.10 = Rm1.40 14 Set 2 ENGLISH Question 26. Answer A NAV/unit cum-D = NAV/units in circulation = RM150,000,000/100,000,000 = RM1.50 27. Answer A The major portion of equity UTS portfolio are shares of listed companies. (Chapter 1, page 1-13) Question 28, 29 & 30 Lump sum investment : RM100,000 Initial entry cost : 6.5% On-going management fee : 1.4% Rate of Return : 11% 28. Answer B Working capital = RM100,000/(1+6.5%) = RM100,000/(1.065) = RM93,896.71 Effective Rate of Return = 11% - 1.4% = 9.6% With the formula FV = PV (1 + i)ⁿ = RM93,896.71 (1+9.6%)¹º = RM93,896.71 (1.096) ¹º = RM234,831.27 29. Answer C Working capital = RM100,000/1+6% = RM100,000/1.06 = RM94,339.62 Effective Rate of Return = 11% - 1.4% = 9.6% With the formula FV = PV (1 + i)ⁿ = RM 94,339.62 (1+9.6%) 10 = RM 94,339.62 (1.096) 10 = RM 235,938.96 30. Answer C Rule of 72 = 72/9.6 = 7.5 years 31. Answer A Amount invested = RM 10,000 15 Set 2 ENGLISH Question Working Money = RM 10,000/(1+5%) = RM 9523.81 Total units = RM 9523.81 / RM0.66 = 14,430.02 units 32. Answer B MER = (Fees+Recovered Expenses)X 100 Average Fund Size = RM3,723,717 X 100 235,300,528 = 1.58% 33. Answer A Investors in UTS do not purchase the securities in the portfolio security. Ownership of the portfolio is divided into units of entitlement and each investor is known as a unit holder. (Chapter 1, page 1-2) 34. Answer B The Guidelines on Unit Trust Fund require each UTS to publish at least 2 reports for each financial year - an interim and annual report. Each unitholders is to be sent a copy of each report within 2 months after the end of the financial period. (Chapter 3, page 3-9) 35. Answer A Property, as an asset class, is most suitable for a listed and closed-end structure since the unit holders can only sell units to other investors and, following the initial public offering, UTMC can be certain of having raised sufficient application money to purchase the nominated real property. (Chapter 1, page 1-12) 36. Answer A After receiving distribution, the NAV of the fund falls by the amount of the distribution. (Chapter 1, page 1-46) 37. Answer B A gradually decreasing MER indicates a UTMC may be managing its operating cost efficiently for its fund size as MER is a summary of the ongoing expenses incurred by the UTS. (Chapter 1, page 1-32) 16 Set 2 ENGLISH Question Question 38 & 39 38. Answer B NAV/unit cum distribution = RM1,500,000 1,000,000 units = RM1.50 NAV/unit ex distribution = RM1.50 - RM0.40 = RM 1.46 39. Answer D Repurchase Amount = 20,000 units X RM1.46 = RM 29,200.00 40. Answer C Opportunity cost is a disadvantage for UTS. As with any decision, an investor who invests in UTS may have produced better returns by investing in other investment. This represents the "opportunity cost" of investing in UTS. (Chapter 1, page 1-3 to 1-5) 41. Answer A It is the trustee's responsibility to safeguard the UTS assets and ensure that they are invested in accordance with the terms of the deed. (Chapter 2, page 2-2) 42. Answer C Switch is a repurchase of units in a UTS (e.g. aggressive UTS) by a UTMC at the request of a unit holder and the immediate reinvestment of the repurchase proceeds as application money into a different UTS (e.g. medium to low risk UTS) managed by the same UTMC. (Chapter 3, page 3-8) 43. Answer D "Buying" a distribution entitlement for the full period means acquiring units just before the ex Distribution date. However, the decision to buy immediately prior to the ex Distribution date has reduced the investor's capital, since the UTS prices will fall on the following day by the amount of the distribution. The investor has, in effect, turned his capital into income and is no better off. (Chapter 3, page 3-12) 44. Answer C By using DCA concept, investor can turn fluctuating prices to their advantage; especially if prices are moving down, they can purchase more units and reduce the average cost of their investment portfolio. (Chapter 3, page 3-30 to 3-32) 17 Set 2 ENGLISH Question 45. Answer D Compounding factor = (1+i) ⁿ = (1 + 4%) 6 = (1 + 0.04%) 6 = 1.265319 Value of the house after six years = RM 75,000 X 1.265319 = RM 94,898.93 46. Answer A UTS, in the long run, can produce returns superior to those from traditional savings account and fixed deposits. The "cost" of these potentially higher return is, of course, the risk that accompanies the investment. (Chapter 1, page 1-3) 47. Answer A The major portion of equity UTS portfolios are shares of listed companies. (Chapter 1, page 1-13) 48. Answer B UTC should practice fair dealing (code of ethics) whereby aggressive and offensive sales practice should be avoided. (Chapter 4, page 4-27) 49. Answer C The FMUTM was formed on 7 August 1993 as a company limited by guarantee and not having a share capital. (Page viii) 50. Answer A NAV/unit end of day = Total NAV/Number of units = RM190,000,000.00/200,000,000 = RM0.95 51. Answer B Initial service charge is the cost to an investor of investing in, or entering, UTS and it is levied primarily to cover the UTMC costs of marketing and distributing units, and the cost of opening an account in the unit register for a unitholder. (Chapter 1, page 1-29) 52. Answer D Number of units after unit split issue = 5,000 X ³/2 = 7,500 units The effect of splitting units in UTS does not affect the NAV of that UTS, nor does it effect the value of a unit holder's investment. (Chapter 1, page 1-44) 18 Set 2 ENGLISH Question 53. Answer B Performance of relevant benchmark such as the KLCI, interest rate, and sometimes the inflation rate and EPF returns are one of the methods to measure performance. (Chapter 1, page 1-35) 54. Answer A With the formula FV = PV (1 + i)ⁿ 26125 = 25000 (1 + i) 1.45 = (1 + i) 0.45 = i i = 4.5% FV = 25000 (1+ 4.5%) 2 = 25000 (1.045) 2 = 27,301 55. Answer D Own pocket money = 33% 33% = RM40,000 33 = RM40,000 100 Amount = RM40,000 X 100 33 = 121,212 56. Answer A 57. Answer D 58. Answer A Initial sales charge is the cost for an investor who invests in UTS. (Chapter 1, page 1-29) 59. Answer A All assets od a UTS are held in the trustee's name for safekeeping. (Chapter 2, page 2-15) 60. Answer A Repurchase amount = 5000 units X RM0.89 = RM4,450 19