QUESTION 1 (50 MARK)

A. Failure to manage working capital is the first step towards failure in business. Discuss this statement. (20 marks)

B. You are considering investing in one of the following two company shares.

Company	Expected Rate of Return (%)	Standard Deviation of Rate of Return (%)
Nirmala Bhd.	15%	65.84%
Nilam Sari Bhd.	15%	3.87%

Which company stock would you choose? Explain your answer. Show your calculations if necessary.

(10 marks

C. You have just been announced as the main prize winner for the lucky draw of Al-Maliki savings account by Bank Muslim (M) Bhd. This entitles you to receive a cash prize of RM1,000,000 from the bank. What will you do with the winning money? Discuss your answer. Show your calculations clearly if necessary.

(20 marks)