You neighbour asks you what self-managed superannuation funds (SMSFs) are.

I. In your own words, explain the concept of SMSFs, why they are popular, and what can be the drawback of SMSFs.

II. Several major brokerage firms in Australia decide to increase the brokerage fees for equity trading. Discuss the impact on Australian equity risk premium.

III. List at least three reasons why an asset manager focusing on long-term investment should incorporate sustainability and impact considerations.

IV. List at least three reasons why banks need to invest in treasury notes and bonds.

[4+2+3+3] = 12 marks