Section 1 Two (2) marks allotted to each question. Twenty (20) marks overall Give concise answers of up to 3 sentences to the following, except in the cases of 3, 4 and 5. 1. Company XYZ Ltd. had retained earnings of $120 million at December 31, 2019 and recorded a net loss of $15 million in the financial year which ended December 31, 2020. What was its retained earnings at December 31, 2020? Explain your answer. 2. Identify the major difference between investment strategy in the pre-retirement/late- career phase and in the establishment/mid-career phase of the life cycle. Explain why the change of strategy is necessary. 3. Fill in the blanks in the following sentences. A bond that is issued at par must mature at to have a yield to maturity that equates to the coupon rate. Aggressive investors aim to gain from betting on interest rate movements due to the relationship between bond prices and interest rates. 4. Fill in the blanks in the following sentence. Asset mix recommendations may be expressed in ranges to allow room to to the of the investor. 5. Fill in the blanks in the following sentence. is used to analyse a company to see if it is sound to invest in and looks for identifiable patterns in the market which form the basis for predicting future stock price movements. 6. Why is it advantageous to the investor to keep stock in electronic form rather than in the form of paper certificates? Give two advantages. 7. How does a leading indicator differ from a coincident indicator? 8. Identify two benefits that regulation of the financial market brings to the market, participants in the market or the economy. 9. Unit trusts and mutual funds offer investors limited scope for diversification. Is this statement true or false? Justify your answer. 10. Which derivative has a high level of customisation, and how does this affect its ability to trade