Question31

Bias creates selective distortion of the risk faced. Investors who purchase stocks that they are familiar with is a type of:

Select one:

a.Illusion of control bias

b.Accessible bias

c.Intimacy bias

d.Evidence bias

Question32

Price of securities generally has an inverse relationship with the movement of interest rate. Which of the following securities will generally increase due to reduction in interest rate announcement?

Select one:

a.All the three securities

b.Corporate Bond

c.Warrants

d.Ordinary shares

Question33

Which of the following assets is considered to be the least ideal in terms of rate of return for accumulation of wealth of retirement plan purposes?

Select one:

a.Quoted shares

b.Unit trust

c.Real estate

d.Traditional whole life insurance plan.

Question34

The process of retirement planning would generally DO NOT involve

Select one:

a.concentrating on maximizing returns from corpus after retirement to leave a sizable estate.

b.making plan for covering lifelong living expenses & disposition of assets at death.

c.planning to maintain current lifestyle and providing cost of sating physically healthy after retirement.

d.projecting individual needs and goals into the future and making sound financial plan.

Question35

An investor placed RM380,000 in USRM when the exchange rate was US1:RM3.80. Interest rate was 5% per annum. After 3 years, the exchange rate change to US1:RM2.80. How much is the monetary loss upon withdrawal of the USRM deposit when converted to ringgit Malaysia after 3 years.

Select one:

a.RM90,594

b.RM55,865

c.RM115,762

d.RM100,000

Question36

Which of the following investment portfolio has the highest risk level?

Select one:

a.Portfolio with standard deviation of 0.05

b.Portfolio with standard deviation of 0.0

c.Portfolio with standard deviation of 0.55

d.Portfolio with standard deviation of 0.50

Question37

The definition of retirement planning include the following EXCEPT

Select one:

a.Aim to provide future income both for the retiree and its dependents

b.Management of expenses

c.Immediate settlement of all liabilities

d.Management of existing and future financial resources

Question38

The replacement ratio method

Select one:

a.requires the assumption that changes in the cost of living is the reflection of changes in someone income over the years.

b.requires the consideration of post-retirement inflation

c.Requires an estimation of amount needed to meet future expenses in detail

d.requires the construction of a budget for post-retirement living

Question39

Which of the following is not a non-financial items that can affect a retirement planning?

Select one:

a.Marital stability

b.Loss of identity

c.Life expectance

d.Competing needs

Question40

An individual begins to accumulate retirement fund considering today's inflation throughout the post-retirement period. If the inflation actually turns out to be lower after retirement, the accumulated fund would

Select one:

a.be consumed earlier than anticipated.

b.get inflated by the margin inflation is lower.

c.last longer than anticipated.

d.more or less be sufficient till the expected lifespan.