The first ever Shariah screening filter was developed in Malaysia by RHB Since then there have been various methodologies developed by Shariah scholars to differentiate between investment in shares that are considered to be Shariah compliant and non Shariah compliant Explain the quantitative filters that are applied by the Dow Jones Islamic Market Index and provide a detailed original rationale of why each filter was established (10 marks) The Dow Jones Islamic Index use the 33 rule in their quantitative filters Where did this rule originate from Is it important to have a Shariah legal foundation for all percentages used (5 marks) Imagine yourself as a Shariah scholar and the mutual fund manager approaches you with the following issue It turns out that one of the publicly listed companies that the mutual had invested for the past 3 years failed one of the quantitative filter tests What advice and wise words would you give to the mutual fund manager Give at least 4 (10 marks)

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The first ever Shariah screening filter was developed in Malaysia by RHB. Since then there have been various methodologies developed by Shariah scholars to differentiate

The first ever Shariah screening filter was developed in Malaysia by RHB. Since then there have been various methodologies developed by Shariah scholars to differentiate between investment in shares that are considered to be Shariah compliant and non-Shariah compliant.

Explain the quantitative filters that are applied by the Dow Jones Islamic Market Index and provide a detailed original rationale of why each filter was established. (10 marks)
The Dow Jones Islamic Index use the 33% rule in their quantitative filters. Where did this rule originate from? Is it important to have a Shariah legal foundation for all percentages used? (5 marks)
Imagine yourself as a Shariah scholar and the mutual fund manager approaches you with the following issue. It turns out that one of the publicly listed companies that the mutual had invested for the past 3 years failed one of the quantitative filter tests. What advice and wise words would you give to the mutual fund manager. Give at least 4. (10 marks)