Q1)List and explain the following various types of investment risk

1) Mismatch risk

2) Inflation risk

3) Interest rate risk

- Reinvestment risk

-Market volatility

4) Market risk

5) Market timing risk

6) Lack of diversification risk

7) Currency risk

8) Liquidity risk

9) Credit risk

10) Legislative risk

11) Gearing risk

Q2) Differentiate between the roles of a financial counsellor and the roles of a financial planner.

Q3)What are some of the principal factors that have contributed towards many developed countries including Australia, facing a rapidly ageing population?

Q4)State and explain the advantages and disadvantages of consumer credit?

Q5)List and explain the advantages and disadvantages of the use of credit card and debit card.

Q6)three examples of autralian banks, australian building societies, australian credit unions and australian finance companies.

Q7)what is the area of business/specialisation of the following:

-Banks

-Building societies

-Credit unions

- finance companies

Q8)Which one of the following is an authorized-deposit taking institutions (ADI):

-Banks

-Building societies

-Credit unions

- finance companies

Q9)Banks, building societies, credit unions and finance companies are regulated by whom?

Q10) Explain the nature of personal financing

Q11)List and explain the six steps involved in financial planning

Q12)What is the value of a 9% bond that matures in 5 years, pays interest semi-annually, has a face value of $1000, when the current market yield is 5.5% per annum?

Q13)Jerry's airport pickup service is a fast growth stock and expects to grow at a annual rate of 25% for the next four years. It then will settle to a constant growth rate of 8%. The last year dividend was $4. If the required rate of return is 18%, what is the current price of the stock?

(draw a timeline also)

Q14)FIN111 manufactures an innovative mouse trap. Sales this year are $435,000. The company expects its sales to go up to $700,000 in five years, what is the expected growth rate in sales for this firm?

Q15)a) You are planning to buy a new caravan to make a trip to Australia. The cost of the van is $225,000 and you can get a loan from the bank for that amount. If you can get a fifteen year loan at 8.75% per annum compounded fortnightly, how much do you need to pay every fortnight?

b) Suppose you are going to receive $2000 per year for five years. The appropriate interest rate is 6% per annum. What is the future value if the payments are an annuity due?