Faculty of Business, Economics and Accounting

Department of Business Studies

HELP Bachelor of Business (Hons) Year 2
HELP Bachelor of Economics (Hons) Year 2
HELP Bachelor of Management (Hons) Year 2
HELP Bachelor of Business Psychology (Hons) Year 2
HELP Bachelor of Tourism Management (Hons) Year 2

INTERNAL SUBJECT DETAILS

Semester 3, 2016
Subject:

MPU3353
Personal Financial Planning in
Malaysia

Subject Lecturer/Tutor:

Mr. Sheum Chee Meng

Telephone: 016-2228281
Email
: sheum08@yahoo.com

Consultation:

Please call or email for appointment

INTRODUCTION TO THE TEACHING STAFF

Mr. Sheum Chee Meng holds an MBA in Finance from The Nottingham Trent
University. He also holds a certificate from The Institute of Chartered Secretaries and
Administrators and a certified credit professional from Asian Institute of Chartered
Bankers (formerly Institut Bank Bank Malaysia). Prior to his lecturing career, he served
as a credit trainer of a local bank. Mr. Sheum has a wide experience in the teaching of
Accounting and Finance, as he has been involved in the academic field for more than
20 years.
SUBJECT OBJECTIVES
This subject is an overview of personal financial planning and investment advising from
Malaysia perspective. The major aspects of financial planning are reviewed to provide an
outline for a good understanding of the subject which is vital in managing and evaluating
financial alternatives. This subject will help students to create, implement and evaluate
financial action plan.

OBJECTIVES
After studying this subject, the student should be able to do the following:

Provide good knowledge of investment alternatives to potential investors;

Gain some understanding of the ethical, legal and compliance issues relevant to the
Proper Authorities Holders;
Understand characteristics of investment choices in light of risk and return;
Understand the nature of gearing;
Be aware of the issues related to taxation;
Understand the role of superannuation for wealth accumulations;
Introduced to the concept of estate planning
Provide some experience in the creation of a comprehensive financial plan

TEXTBOOK

Kapoor, Diabay & Hughes (2015). Personal Financial Planning, 11th Edition.
McGraw Hill, New York

RECOMMENDED TEXT(S)

Keown (2013). Personal Finance, 6th Edition. Pearson, New Jersey

McKeown, W.,Olynyk, M., Kerry, M., & Bea, D. (2012). Financial Planning. 5th.
Edition. Sydney, John Wiley Australia.

Madura, J (2014). Personal Finance. 5th. Edition. Pearson/Prentice Hall, New Jersey

Subject Outline / Teaching Plan

Department
Lecturer

: Business Studies
: Sheum Chee Meng

WEEK

Subject Code : MPU 3353

Subject Title : Personal Financial
Planning In Malaysia
LECTURE TOPIC

TOPIC 1
The Financial Planning Industry in Malaysia

TOPIC 2
Regulatory Controls and Practices Affecting Financial Planning

TOPIC 3
The Nature and Scope of Financial Planning

TOPIC 4
Analytical Tools for Financial Planning

TOPIC 5
Risk Return

TOPIC 6
The management of risk

TOPIC 7
The insurance industry in Malaysia

TOPIC 8
Types of insurance cover

MID TERM & BREAK

TOPIC 9
Investment Planning : Concepts of investment

10

TOPIC 10
Primary investment

11

TOPIC 11
Managed investments

12

TOPIC 12
Income tax planning

13

TOPIC 13
The retirement/estate planning process

14 15

FINAL EXAMINATION

ASSESSMENT
There are 3 assessment items for this subject.
Assessment Items

Value

Due Date

1. Presentation/Quiz

20%

To be Advised

2. Assignment

40%

To be Advised

3. Final Examination

40%

Examination period 26 November

10 December 2016**

REQUIREMENTS:
To gain a pass in this subject, students must:

Achieve a total result of 50% or better overall.

** - Please check on the notice board and My Acel for the actual date. HELP
University reserves the right to make any changes to the above where appropriate.

ASSESSMENT DETAILS
ITEM 1: In-class short quiz

10%

There will be 2 Sections in short quiz.

Rational
The in-class short quiz is designed to:
Allow you to demonstrate your understanding of the subject topics;
Give you wider scope in answering and in interpreting different concepts and practical
problems in Financial Planning;
Assess whether you have clearly understood and remembered essential concepts,
knowledge and terms covered in the subject topics.
Marking criteria

Correctness of your answers.

Supporting documents.
Demonstrated evidence of clear understanding of the subject topics and the
specific questions.
Ability to write your answers in a clear and targeted manner

ITEM 2: Presentation

10%

Tutorial Group oral presentation

Students are expected to provide a 10 minutes Group presentation.

Each group must consist of min 3 and max 4 students.
Candidates will be evaluated in terms of their effectiveness of presentation in
terms of creativity, style and usage of visual aids.

ITEM 3: Assignment
Due date:
Terms:
Turnitin:

Citing references:

40%

To be advised
Group assignment.( min 4, max 5 persons in a group)
All Assignment submission MUST include the Turnitin Original
Report.
Turnitin I.D and Password is 12999258 and mpu33530816
respectively
Appropriate referencing is required.
You should include in your reference list only those articles and
books that you have actually cited.
You may have read other articles and books but these should be
included only in the bibliography.
You may lose up to a maximum of 10% of the marks allocated
for this assignment without proper referencing.

Assessment rationale:

Assist in the learning process and to develop an understanding in the current

development of the financial planning industry;
To understand some of the applicable rules and laws pertaining to financial
planning;
Develop your understanding of risk in the financial planning process;
Enhance your skill in written communication.

Marking criteria
Answers to the questions will be marked according to:
the clarity and thoroughness with which you answered the questions;
the inclusion of essential information in your answer;
for questions involving calculations - the accuracy of your answers with supporting
workings
Assessment Task
Assignment questions will be available in the E learning resources page and Yahoo
Group web page for this subject.
Choose either one
1) The financial crisis of 2008 and 2009 was a macroeconomic challenge of global
proportions. Various investment analysts have predicted that such phenomena will reoccur in mid-2018. Discuss how do you plan to survive another broad based financial
crisis using the key principles of financial planning.

2) Preparing financial statements may not be as easy as it sounds especially if the dividual
is doing this for the first time. Discuss the challenges that can assist a person to prepare
the financial statements. Using a hypothetical statement, how would you assess an
individuals financial condition.

ITEM 4: Final Examination

40%

This will be of two hours duration, and will cover all topics studied in the subject. See
sample exam for guidance.
Rationale
This assessment is designed to test your understanding of the concepts and theories
covered in this subject.
Requirements
To receive a passing grade or higher in this subject, students are required to obtain a
mark of 20/40 or higher.
Marking criteria
Marks will be awarded for your ability to write clearly and to apply the appropriate
concepts or theories to given questions or scenarios.

Assessment Information
Pass Requirements
Your assessment in this subject will be based on two assessment items worth a total of
60 % and a final examination worth 40%. In order to meet terms in this subject you
must submit all assessment items. To receive a passing grade you must pass the final
examination. In order to achieve a passing grade in this subject, a student must attain a
minimum passing standard in both the overall total mark and the examination. You
must sit for your final examination as scheduled in the final examination period unless
serious misadventure prevents you from doing so.
EXTENSIONS AND LATE SUBMISSIONS
If you are having difficulty in completing work in time due to illness or unusual
circumstances, you may request an extension through your lecturer with supporting
documentation eg. medical certificate. Applications for extensions on or after the
due date of the assessment items will not be considered. NO extensions will be given
without documentary evidence of inability to meet deadlines. A deduction of 10% of
the marks awarded per day late applies if a piece of work is submitted late without
approved extension.
Penalties for Late Submission
The assessment in this subject are sequential in the sense that there are generally
questions pertaining to each topic. For this reason assessment extensions for medical
reasons will generally not cover the entire assessment - rather you will be required to
submit by the due date some proportion of the assessment as agreed to with the lecturer.
You should contact the lecturer well before the due date of the assessment. Note that in
fairness to other students, requests for extensions on the basis of excessive work or
personal commitments will not be granted. You should make every effort to ensure that
your assessment arrives on time. If you are unwell and require an extension for your
assessment, you must contact your lecturer prior to the due date. Assessments
submitted late with no valid medical reason will lose marks. The penalty for late
submission of an assessment without obtaining approval for an extension will be 10%
deduction per day including weekends, of the maximum marks allocated for the
assessment, i.e. 1 day late - 10% deduction, or 2 days late - 20% deduction.
For example, for an assessment worth 20 marks, the calculations depending on the
penalty given are as follows:
Marks received (before penalty): 18 marks
Less 1 day late penalty: 2 marks
Student's final mark: 16 marks

Assignment No.: __

Assignment Cover Sheet

Student Information (For group assignment, please state names of
all members)
Name

Grade/Marks

ID

Office
Acknowledgement

Module/Subject Information
Module/Subject Code
Module/Subject Name
Lecturer/Tutor/Facilitator
Due Date
Assignment Title/Topic
Intake (where applicable)
Word Count

Date/Time

Declaration
. I/We have read and understood the Programme Handbook that explains on plagiarism, and I/we
testify that, unless otherwise acknowledged, the work submitted herein is entirely my/our own.
. I/We declare that no part of this assignment has been written for me/us by any other person(s) except
where such collaboration has been authorized by the lecturer concerned.
. I/We authorize the University to test any work submitted by me/us, using text comparison software,
for instances of plagiarism. I/We understand this will involve the University or its contractors copying
my/our work and storing it on a database to be used in future to test work submitted by others.
Note:1) The attachment of this statement on any electronically submitted assignments will be deemed
to have the same authority as a signed statement.
2) The Group Leader signs the declaration on behalf of all members.

Signature:
mail:

Date:

Feedback/Comments*
Main Strengths

Main Weaknesses

Suggestions for improvement

Student acknowledge feedback/comments

Graders signature

Students signature:

Date:

Date:

Note:

1)A soft and hard copy of the assignment shall be submitted.

2)The signed copy of the assignment cover sheet shall be retained by the marker.
3)If the Turnitin report is required, students have to submit it with the assignment. However, departments may allow
students up to THREE (3) working days after submission of the assignment to submit the Turnitin report. The
assignment shall only be marked upon the submission of the Turnitin report.
*Use additional sheets if required.

10

Department of Business Studies

ACADEMIC INTEGRITY
Honesty and Responsibility
Academic integrity is an important tenet for HELP University. In pursuit of the highest
standards of academic integrity, the Department of Business Studies holds it students to
the highest ethical standards defined by the Rules and Regulations section of the
Academic Handbook. All students at the Department of Business Studies are subjected
to and are bound by the Student Academic Misconduct Rule to assure academic
honesty. Students are required to sign a pledge on the assignment cover sheet before
submitting your assignments to the Administration Office of the Faculty of Business,
Economics & Accounting.
What is Plagiarism?
Plagiarism is academic dishonesty or academic theft, and it is a serious academic
offence. Plagiarism includes, but is not limited to, the followings:
1. quote, paraphrase or summarize someone elses ideas, theories or data, in whole
or in part, without appropriate acknowledgement
2. borrow ideas, opinion or words, in whole or in part, from other sources without
properly crediting the author(s)
3. use any facts, statistics, diagrams or graphs, in whole or in part, without
acknowledging the source clearly
4. claim or imply original authorship of someone elses ideas, theories or data, in
whole or in part, as your own
5. employ or allow someone to help to revise, amend or write your work and pass
off as your own original work
6. collaborate with or allow other students to copy your work
7. draw on sources more than what you have acknowledged by citations
While a student is not discouraged to discuss an assignment with his/her friends or
classmates, the work he/she submits must be done by the student alone. If a student
shares his/her assignment with other students and they plagiarize it, the student is as
guilty as those students who plagiarized his/her assignment. All parties to plagiarism
are considered equally guilty. Under no circumstances should a student be involved in
collusion with other students unless he/she is permitted to work on an assignment
jointly by the lecturer/tutor. If a student is unsure what constitutes plagiarism, he/she is
obliged to consult the lecturer/tutor on the matter before submission of his/her
assignment.
When and How to Reference?
Knowing when and how to cite is a students responsibility. If he/she is in doubt or
need more help on this matter, the student may consult the lecturer/tutor. The following
list comprises some of the sources a student will need to reference. The list is by no
means exhaustive, but simply consists of the most common sources used by students to
complete their work.

1.
2.
3.
4.
5.
6.
7.
8.

Books
Chapters in books
Journal articles
Conference papers
Newspaper articles
Magazines
Websites
Study guide

Students are advised to cite in the following cases [1]:

1. When he/she quotes two or more words verbatim, or even one word if it is used
in a way that is unique to the source
2. When he/she introduce facts that he/she have found in a source
3. When he/she paraphrase or summarize ideas, interpretations, or conclusions that
he/she find in a source
4. When he/she introduce information that is not common knowledge or that may
be considered common knowledge in your field, but the reader may not know it
5. When he/she borrow the plan or structure of a larger section of a sources
argument (for example, using a theory from a source and analyzing the same
three case studies that the source uses)
6. When he/she build on anothers method found either in a source or from
collaborative work in a lab
7. When he/she build on anothers program in writing computer code or on a notcommonly-known algorithm
8. When he/she collaborate with others in producing knowledge
In general, a referencing system requires two parts:
1. In-text citations
This is information about a source within the text of an assignment.
2. List of references
This is a list of all sources a student has used to research his/her assignment. It
is alphabetically arranged by author surname and appears immediately after the
last page of an assignment.
Different faculties or departments may have different requirement on how referencing
for an assignment should be done. The various formats used for in-text citations and list
of references are available in the following websites:
1. Harvard System (http://www.adelaide.edu.au/library/guide/gen/harvard.html)
2. Chicago Style (http://www.chicagomanualofstyle.org/index.html)
3. American Psychological Association or APA Style (http://www.apastyle.org)
4. Modern Language Association of America or MLA Style (http://www.mla.org)
Once a student has selected a referencing style for his/her assignment, he/she must
follow the same style consistently throughout the assignment. We strongly suggest that
the student consults the lecturer/tutor about which method to use before submission of
his/her assignment.

http://www.yale.edu/bass/writing/sources/plagiarism/warning.html, accessed May 18, 2008.

12

What are the Procedures and Penalties for Plagiarism?

When a lecturer/tutor encounters a possible case of plagiarism, the lecturer/tutor shall
report the matter to the Head of the Department, who then initiates an investigation on
the matter. The following procedures would be carried out:
1. The lecturer/tutor shall provide evidence that substantiates an academic offence
has occurred. The following documentations must be ready prior to reporting of
alleged plagiarism:
a. Copy of the alleged plagiarized assignment
b. Copy of the source material (e.g. articles, websites, newspaper, etc.)
c. Report of plagiarism
d. Any other information that would support the claim of plagiarism
2. If the evidence warrants an accusation of academic offence, the Head of
Department shall establish a Board of Inquiry comprising 3 academic staff. The
Department shall provide all necessary documentations, including report on
prior academic offences if applicable, to the Board of Inquiry.
3. The Board of Inquiry shall put the matter to the student in writing and give
him/her an opportunity to respond to the accusation within 3 working days.
4. The student will be required to attend a meeting with the Board of Inquiry.
After meeting the student, the Board of Inquiry shall decide whether or not the
alleged plagiarism has occurred. The following documentations shall be
submitted to the Head of Department at the end of the meeting:
a. Findings of the investigation
b. Recommended action(s) to be taken or imposed
5. The Head of Department shall review the Board of Inquirys report with
supporting evidence and shall decide on an appropriate action(s) based on the
recommendation of the Board of Inquiry.
6. The decision of the Head of Department shall be put in writing to the student.
Copies of all documentations will be retained in the Department.
7. If the student feels that he/she has been unfairly accused or treated, the student
may appeal to the Head of Department within 5 working days.
8. The Head of Department shall review the appeal and the final decision will be
communicated to the student in writing and a copy will be kept with the
Department. Once a determination of plagiarism and penalty has been made by
the Head of Department, the investigative process will be deemed to have ended
and the student will not be allowed to appeal.
Possible penalties for plagiarism range from mark reduction for the assignment to
expulsion from the University. The student will not be allowed to make up the
assignment. If plagiarism has been found to have occurred, the Department will take
action(s) as determined by the forms of plagiarism implicated:
1. Complete plagiarism
Verbatim copying another persons work without acknowledgement
1 st offence : A grade of F in the subject and a warning letter will be
issued
2 nd offence : Expulsion from the University at the discretion of the Head of
Department
2. Substantial plagiarism
Near-verbatim copying another persons work by simply altering the order of
the sentences or the format of presentation or by changing a few words or
phrases without acknowledgement.

1 st offence

Zero mark on the assignment and a warning letter will be

issued
2 nd offence : A grade of F in the subject and a warning letter will be
issued
rd
3 offence : Expulsion from the University at the discretion of the Head of
Department
3. Minimal plagiarism
Acknowledgement is made but paraphrasing by changing and/or eliminating
some words
1 st offence : Deduction of 50% of available marks on the assignment and a
warning letter will be issued
2 nd offence : A grade of F in the subject and a warning letter will be
issued
3 rd offence : Expulsion from the University at the discretion of the Head of
Department
4. Unintentional plagiarism
Insufficient acknowledgement by not applying citation or quotation marks
correctly
1 st offence : Deduction of up to 50% of available marks on the assignment
and a warning letter will be issued
nd
2 offence : A grade of F in the subject and a warning letter will be
issued
3 rd offence : Expulsion from the University at the discretion of the Head of
Department
Pleading ignorance or unintentional plagiarism does not constitute valid reasons for
plagiarism and will not avoid the penalties from being imposed. Excuses for acts of
plagiarism such as the following, but not limited to, will not be entertained:
1. I dont have time to do the assignment
2. I have too many assignments due on the same day
3. I dont know, I really didnt do it
4. I am not aware
5. I dont understand what plagiarism means
6. I have no intention to plagiarize
7. I forgot to cite the reference
8. I forgot to include the bibliography
9. My English is not good
10. My lecturer/tutor did not explain to me
11. In my country, it is alright to copy someone elses work
12. My friend copied my assignment when I let him/her to look at my assignment
13. My friend copied my assignment when I allow him/her to use my laptop
14. I did my assignment in the computer lab, someone must have copied my work
15. I asked my friend to submit my assignment and he/she copied my work
16. I discussed my assignment with my friends, so our answers are the same/similar
17. Even though I do not have in-text citation but I have bibliography/reference list
Students should be reminded that it is their responsibilities to take due care throughout
their written work to effectively reference or cite when they use others ideas from any
source.

14

DEPARTMENT OF BUSINESS STUDIES

SEMESTER X, 20XX
SAMPLE FINAL EXAMINATION
Subject Code

MPU3353

Subject Name

PERSONAL FINANCIAL PLANNING IN MALAYSIA

This examination carries 40% of the total assessment for this subject.
Time allowed :

2 HOURS

INSTRUCTION(S):
1. This examination consists of TWO (2) sections:
SECTION A: FORTY (40) - consists of FORTY (40) questions. Answer ALL questions in the multiple
choice answer sheet provided. Use a 2B pencil and mark on the answer sheet.
SECTION B: consists of ONE (1) question. Answer the question in the answer book provided.
2. This is a CLOSED BOOK examination.
3. Students are NOT permitted to retain this examination paper.

(This examination paper consists of 2 sections in XX printed pages, including cover page)

SECTION A: MULTIPLE CHOICE QUESTIONS (80 MARKS)

Choose the one alternative that best completes the statement or answer the
question.

1. The body responsible for the formulation and implementation of monetary policy in
Malaysia is ________.
A. Bank Negara Malaysia.
B. Securities Commission.
C. Bursa Malaysia.
D. Malaysian Institute of Economic Research.

2. It is likely that achieving financial goals

A. hinders your effort to achieve non-financial goals.
B. helps your effort to achieve non-financial goals.
C. is burdensome and lowers the quality of life.
D. turns people into cynics.

3. Which alternative below is not true of current consumption?

A. It refers to goods and services used in the current time period.
B. Generally, more of it leads to greater levels of satisfaction.
C. It can increase through current borrowing.
D. It is usually less desirable than future consumption.

4. A building-block approach to financial planning refers to

A. pursuing conservative investments and activities first.
B. linking all investments and activities into one plan.
C. a guide for achieving maximum wealth with limited resources.
D. phases of the financial life cycle.

5. You are planning a vacation tour to Pulau Tioman and trying to choose between the
5-day and 7-day package. You are using marginal analysis when
A. you decide the benefits from either package are worth their respective costs.
B. compare the added benefits of the 7-day package to its added cost.
C. you select one package over the other.
D. you had the foresight to plan your vacation.

6. You have just put RM1,000 in an investment that offers a 12% annual yield, using a
simple interest calculation. At the end of two years your interest earned will be
A. RM120.00.
B. RM144.00.
C. RM240.00.
D. RM254.40.

16

7. With an interest rate of 9%, RM5,000 will grow to RM10,000 in approximately

A. 8 years.
B. 4 years.
C. 12 years.
D. 24 years.

8. Assuming a discount rate of 10%, the present value of RM1,000 received two years
from now is
A. RM800.00.
B. RM826.45.
C. RM899.90
D. RM900.00

9. You will buy a lottery ticket. If you win, you have a choice of receiving RM995,000
now or three equal end-of-year payments of RM400,000. You should take the
payments
A. because RM1,200,000 is greater than RM995,000.
B. if you earn 20% or more on your investments.
C. if you earn 11% or more on your investments.
D. if you earn less than 10% on your investments.

10. Gross income consists of

A. income from all sources.
B. only earned income.
C. all income less tax credits.
D. all income subject to the federal income tax.

11. If parents claim a child as an exemption on their tax return, the child on his or her
tax return
A. may take an additional exemption, regardless of how much the child has earned.
B. may take an additional exemption, only if the child has earned less than a specified amount.
C. may not claim an additional exemption.
D. may only claim an additional exemption if he or she is under age 16.

12. A future return is described most appropriately as

A. dividends or interest.
B. a total return.
C. a contractual promise to pay.
D. price appreciation.

13. A risk averter is someone who

A. never takes risks.
B. expects adequate compensation for undertaking risky investments.
C. limits his or her investments to insured savings accounts.
D. avoids risk by simply not investing.

14. An organized exchange refers to

A. a physical place where securities transactions are made.
B. a swap of common stock for bonds arranged by a broker.
C. a group of investors investing in limited partnerships.
D. criminal influences in the securities markets.

15. A short position refers to

A. inadequate margin in a margin account.
B. securities you have sold but do not own.
C. an order to sell stock at a price below its current market price.
D. securities you purchased but have not yet taken delivery of the shares.

16. If you tell your broker to buy securities at the best possible price, you have placed a
A. market order.
B. limit order.
C. stop-loss order.
D. price order.

17. Which explanation below is most appropriate in explaining why diversification can
reduce investment risk?
A. The greater the number of assets held, the greater the portfolio return.
B. The greater the risk taken, the greater the portfolio return.
C. Asset returns are often poorly correlated.
D. Asset returns tend to be stable over time.
18. The returns on Asset A are strongly, positively correlated with Asset B's returns;
thus, holding the two assets together will
A. significantly reduce portfolio risk.
B. significantly increase portfolio risk.
C. have little or no effect on portfolio risk.
D. significantly increase portfolio return.

19. Assume that you are considering investing in MAS common stock. You have found
that its beta is +1.2 and you think a market risk premium should be 8%. If you could
earn 12% on risk-free Treasury securities, MAS has a required return of ________%.
A. 24.0
B. 14.4
C. 21.6
D. 22.4

20. If you believe a company will grow rapidly in the future, you should buy its
A. common stock.
B. preferred stock.
C. bonds.
D. notes.
18

21. Voting rights are typical ly held by

A. only common stockholders.
B. only preferred stockholders.
C. both common and preferred stockholders.
D. common and preferred stockholders and bond holders.

22. AirAsia declared a two-for-one stock split. Assuming you presently own 100 shares
means that you
A. will receive another 100 shares.
B. will receive 200 more shares.
C. will receive two more shares.
D. can convert your 100 shares of common stock into 200 shares of preferred stock.

23. TNB stock expects to earn $3.00 a share next year and pay a cash dividend of
RM2.00 a share.
If the stock is selling for RM20.00 a share, its current return is
A. 15%.
B. 10%.
C. 25%.
D. 5%.

24. A mutual fund is an organization that

A. invests its funds in securities issued by corporations and governments.
B. is part of an insurance company that invests policyholders' premiums.
C. a partnership of corporate investors.
D. sets money aside to absorb potential stock market losses.

25. The difference between a load fund and a no-load fund is that
A. load funds invest in a variety of securities while no-load funds limit their
investments to common stocks.
B. load funds borrow money to increase their portfolio, while no-load funds do not.
C. you buy no-load funds at their net asset values, but you pay more than net asset
value when you buy load funds.
D. no-load funds can be purchased anywhere, but load funds must be purchased
through a stockbroker.

26. One difference between open-end and closed-end funds is that

A. open-end funds have no maturities, while closed-end funds are dissolved after a
given number of years.
B. shares of an open-end fund are bought and sold directly from or to the fund, while
closed-end shares are bought and sold like the shares of any corporation.
C. open-end shares can be purchased by the general public, while closed-end shares are
available only to fund directors.
D. closed-end funds control and manage open-end funds.

27. Which service below is usually not provided by a mutual fund?

A. Fund switching within a family of funds
B. Transactions by telephone
C. Reinvestment plans
D. Insurance to protect against market losses

28. Maybank Mutual Fund had NAV values of RM9, RM10, and RM12 at the
beginning, middle, and end of last year, respectively. It made a RM1.00 per share
distribution at mid-year. The average annual total return of the fund for the year is
A. 33.33%.
B. 44.44%.
C. 46.67%.
D. 55.55%.

29. Personal liability coverage

A. protects you against the financial harm caused by the negligence of others.
B. protects you only from financial damages for the bodily injury your negligence has
caused others.
C. protects you only from financial damages for the property loss your negligence has
caused others.
D. protects you against legally-obligated expenses for the bodily injury or property
damage your negligence has caused others.

30. The primary difference between entering into a gamble and purchasing insurance is
that
A. in a gamble the odds are known with certainty.
B. with all types of insurance you are always financially better off, whereas, with
gambles, you are always financially worse off.
C. a gamble involves pure risk, whereas insurance involves speculative risk.
D. gambling is in many circumstances illegal and insurance is legal.

31. "Basic health care" coverage consists of

A. hospital insurance, surgical insurance, and medical insurance.
B. hospital and accident insurance.
C. dreaded disease insurance.
D. heart and cancer insurance.

32. Cancer insurance

A. is high-cost insurance that makes little financial sense.
B. can fill an important gap in traditional health care coverage.
C. is specifically provided young adults under special provisions in the Medicare
program.
D. should be supplemented by additional policies covering other major illnesses.

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33. There are many reasons why people buy life insurance. Of these
A. the best reason is the protection provided your beneficiaries.
B. the best reason is the forced savings generated by term life insurance.
C. the best reason is the interest return on ordinary life.
D. none have proven important for most families.

34. A good rule of thumb is that an emergency fund should

A. not be separately included in your estimate of insurance needs, if you have properly
accounted for those needs elsewhere in your maintenance estimate.
B. equal about three to six months of survivors expenses.
C. equal annual pre-injury family income.
D. equal the difference between annual pre-injury family income and annual postinjury family income.

35. One of the two major purposes of estate planning is to

A. transfer your assets at death in a manner consistent with your wishes.
B. accumulate as much wealth as possible.
C. avoid leaving a death estate by engaging in life transfers.
D. avoid transfers of assets that pass through probate.

36. To die "intestate" means to die

A. while a resident of more than one state.
B. without an heir apparent.
C. without estate.
D. without a valid will.
37. Which one of the following is not accomplished during probate?
A. The validation of the will
B. Payment of claims against the estate
C. Distribution of property in joint tenancy
D. Determination of legal heirs

38. Of those assets distributed at death, which one of the following must pass through
probate?
A. Assets distributed through the will
B. Assets distributed through a living trust
C. Assets distributed through a contractual transfer
D. All of the assets described above must pass through probate.

39. Some pension plans guarantee a specific benefit at retirement. These are known as
A. defined benefit plans.
B. defined contribution plans.
C. qualified pension plans.
D. non-adjustable pension plans.

40. You may be entitled to receive the funds in your retirement plan under which of the
following conditions?
I. retirement.
II. disability.
III. termination of employment.
IV. financial hardship.
A. only I
B. only I and II
C. only I, II, and IV
D. I, II, III, or IV

SECTION B (20 MARKS)

Answer ONE compulsory question.
Students are required to provide detail calculation working, explanations and
diagram if necessary.
Question:
Explain your rights and return potential as a common stockholder, bondholder, or
preferred stockholder. Discuss whether one of these is better than the other two.

*** END OF EXAMINATION PAPER ***

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