DIPLOMA IN MANAGEMENT

JAN / 2020

BDPL 4103

INTRODUCTORY INVESTMENT MANAGEMENT

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 1.0 QUESTION 1

i) Unit amanah - menerangkan apakah 'Unit Trust' dan memberikan contoh kepercayaan
unit yang relevan (mis. di Malaysia - 1. Public Mutual dan 2. Pacific Mutual Fund)

ii) Derivatif - menerangkan apakah 'Derivatif' dan menyediakan contoh derivatif yang
relevan

iii) Stok biasa - menerangkan apa yang disebut 'Stok Biasa' dan memberikan contoh
saham biasa

iV) Bon - jelaskan apa yang dimaksudkan dengan 'Bond' dan berikan contoh bon yang
relevan

v) Stok pilihan - jelaskan apa yang 'Stok Pilihan' dan berikan contoh stok pilihan yang
berkaitan

2.0 QUESTION 2
The answer to this scenario are as follows

a) Primary Market Transaction because the transaction involves new shares.

b) Secondary Market Transaction because the transaction involves existing shares.

3.0 QUESTION 3

a) Calculation Of The Annulised Holding Period Return For The Following Sets Of
Investment

ASSETS HOLDING PERIOD RETURN (HPR) HOLDING

(100%) PERIOD
Real Estate 20 2.6 Years
XYZ Share 25 1.5 Years

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 Unit Trust 4 9 Months
ABC Bonds 10 2 Years
NCQ Share -3 6.2 Months

Formula Annualised HPR = ( 1 + HPR ) 1/n - 1

i. Real Estate

= ( 1 + 20%) 1 / 2.6 - 1
= ( 1 + 0.20) 1 / 2.6 - 1
= 0.0726
= 7.26%

ii. XYZ Share

= ( 1 + 25%) 1 / 1.5 - 1
= ( 1 + 0.25) 1 / 1.5 - 1
= 0.1603
=16.03%

iii. Unit Trust

= ( 1 + 4%) 1 / 9months - 1
= ( 1 + 0.04) 1 / 0.75 - 1
= 0.0536
= 5.36%

iv. ABC Bonds

= ( 1 + 10%) 1 / 2 - 1
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 = ( 1 + 0.10) 1 / 2 - 1
= 0.0488
= 4.88%

v. NCQ Share

= ( 1 + (- 3%) 1 / 6.2 months - 1

= ( 1 + (- 0.03)) 1 / 0.5166 - 1
= - 0.0572
= - 5.72%

b) Differences of business risk and financial risk include the example.

 Business Risk
Refer to the variation of a firm’s operating earnings over a certain time
period.
 Business Risk Examples
Based on accounting such as the decision to extend the terms to the customer
it affects the business risk business. High levels of outstanding debt need to
be eliminated and this will reduce our operating income. Sales and
marketing strategies also impact business risk. For example, if a company
spends a significant amount of marketing but some sales revenue the
company can only do this several times before the decision loss. Having a
high overhead also affects the business risk. If we pay RM10,000 in rent and
utilities a month but our monthly sales often exceed RM 20,000, then it has
a high business risk. If the company can cut costs to RM 5,000, it will
indirectly drastically reduce this risk.

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  Financial Risk
Refer to the variation of a firm’s earning’s per share as result of using fixed
cost financing such a debt.
 Examples of Financial Risk
In addition to loans, your company's obligations to pay suppliers and others
contribute to financial risk. For example, when your company takes over the
inventory that generates accounts payable RM 60,000 its financial risk
increases. The structure of repayment, interest and long-term repayments on
your company's debt will appear to be greater than the presence of a simple
debt. If you have a fixed interest of RM 500,000 six percent (6%) in the
quarterly installment of RM 10,000 over the next ten years with a balloon
payment at the end, while other companies with the same net income have
a credit line of RM 500,000 at interest rate at eight percent, your company
has less financial risk.

BUSINESS RISK FINANCIAL RISK

The uncertainty of expected return on an as The uncertainty of return if the company

set if the company does not use debt takes debt
It is calculated from the overall asset The arises if the total debt of the firm is
invested in the business more in the capital structure
it is related to the total profit if the businss It is related to the financial profit of the
business
It is related to the investment policy of the It is related to both investment policy and
firm capital structure of the firm
It related to operating leverage It related of financial leverage
Owners and creditors are concern with the Only the owner of the business can control
risk this risk
Owners as well as creditor can control this Only the owners of the business can control
risk this risk
This is an unavoidable risk This is an avoidable risk
Capital structure is not considered in Capital structure is considered in analysing
analyzing business risk financial risk

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 Rujukan :
https://www.usahawan.com/kewangan/info-pelaburan-unit-trust-yang-harus-anda-tahu.html/
https://www.bursamalaysia.com/bm/reference/education/derivatives/derivatives_clearing/settl
ement_processes_physical
http://newbie-unittrust.blogspot.com/2008/12/apa-itu-bon.html
https://cgnarzuki.com/perakaunan/syarikat-berhad/
https://ms.brictly.com/derivatif-risiko-dan-ganjaran-mereka/
https://yourbusiness.azcentral.com/compare-contrast-business-risk-financial-risk-25505.html

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