Mock 02

1. Which of the following investment instrument is historically best protection against inflation? A. Stock B. Bond C. Gold D. Fixed Deposit

8. Based on historical pricing, Ms. Tan redeemed 5,000 units of Fund A on 13/08/99, how much money is she going to get back? A. RM 4,950 B. RM 4,700 C. RM 4,800 D. RM 4,750

2. Mr. A is holding 2,000 unit of Fund ABC. The NAV of the Fund cum-dividend is RM 1.20, and the fund declare RM 0.10 dividend (assuming no taxes and charges). Upon the declaration, the xd-NAV is RM 1.10, xd-buying price is RM 1.10, xd-selling price is RM 1.15. Assuming Mr. A want his dividend to be reinvested, and the reinvestment price the same as NAV, what is the investment value of Mr. A after the dividend? A. RM 2,400 B. RM 2,420 C. RM 2,300 D. None of the above

9. Based on forward pricing, Mr. Lim invested RM 4,000 in Fund A on 13/08/99, how many unit is he going to get? A. 3,960.40 B. 4,040.40 C. 4,000 D. 4,166.67

3. Based on Question 2, what is the units holding of Mr. A after the dividend declaration? A. 2,200 units B. 2,000 units C. 2,181.82 units D. 2,400 units

11. “The prices are determined one of the characteristics of: A. Income fund C. Open-ended fund

4. Where is the income of Unit Trust Management Company derive from? A. Services Charge B. Annual Management Fee C. Commission D. A & B 5. Which of the following is the most risky investment? A. Money Market Fund B. Hedge Fund C. Equity Income Fund D. Bond Fund 6. A decreasing MER stand for which of the following? A. The performance of the fund is getting worse. B. The fund performance is getting better. C. The Management Company is managing the total fees and expenses well. D. The Fund Manager is reducing the annual management fee. Question 7 to 10, to be answered based on the following: The published prices of Fund A were as follows: Date NAV Buy 12/08/99 0.95 0.95 13/08/99 0.94 0.94 14/08/99 0.96 0.96

Sell 1.00 0.99 1.01

7. Based on historical pricing, Ms. Lee invested RM 2,000 in Fund A on 12/08/99, how many units is he going to get? A. 2,000 B. 2,105.26 C. 2,020.20 D. 2,127.65

Set 2 / NSG Premier Consultants

10. Based on forward pricing, Ms. Cheng redeemed 10,000 units of Fund A on 13/08/99, how much money is she going to get back? A. RM 9,400 B. RM 9,500 C. RM 9,600 D. RM 10,100 by

demand

and

supply”.

This

is

B. Growth fund D. Close-ended fund

12. Which of the following is more likely to declare regular dividend? A. Listed fund B. Close-ended fund C. Income fund D. Growth fund 13. Islamic fund can not invest in the followings: I. Conventional Banking Stock II. Gambling Stock III. Alcoholic Stock IV. IT Stock A. I, II & IV B. II & III C. II, III & IV D. I, II & III E. All of the above Question 14 to 17 are to be answered based on the following: NAV cum-dividend of Fund AA is RM 150,000,000, unit in circulation is 100,000,000. The fund declare dividend 10cents per unit, and the fund manager charging 5% service charges. 14. What is the NAV per unit of Fund AA ex-dividend? A. RM 1.50 B. RM 1.40 C. RM 1.45 D. RM 1.38 15. What is the NAV per unit of Fund AA cum-dividend? A. RM 1.50 B. RM 1.40 C. RM 1.45 D. RM 1.38 1

16. What is the selling price ex-dividend? A. RM 1.47 B. RM 1.57

C. RM 1.49

D. RM 1.36

17. Mr. Chan is holding 10,000 units of Fund AA, and his dividend is to be reinvested at NAV per unit, assuming there is no tax, how much is Mr. Chan's investment value upon dividend declaration? A. RM 14,250 B. RM 14,000 C. RM 15,000 D. RM 14,800 18. How much is the maximum service charge a fund manager can charge? A. 10% B. 5% C. 5 cents D. no ceiling 19. Which of the following has the highest volatility of price? A. Bond Fund B. Aggressive Growth Fund C. Money Market Fund D. Income Fund Question 20 to 24 are to be answered based on the followings: The NAV cum-dividend of Fund B is RM 292,500,000, and uniits in circulation is 195,000,000. The fund declare dividend of 15 cents per unit, and the manager is charging 5% service charge. 20. What is the NAV per unit cum-dividend? A. RM 1.50 B. RM 1.35

C. RM 1.45

D. RM 1.60

21. What is the NAV per unit ex-dividend? A. RM 1.50 B. RM 1.35

C. RM 1.45

D. RM 1.60

22. What is the xd-selling price of Fund B, if the Manager charging 5% service charge rounding to nearest cent? A. RM 1.50 B. RM 1.35 C. RM 1.45 D. RM 1.42 23. What is the investment value of Mr. Ho before the declaration of dividend, if he is holding 60,000 units? A. RM 93,000 B. RM 92,000 C. RM 90,000 D. RM 91,500 24. Assuming no tax, what is the investment value of Mr. Ho after the declaration of dividend, if he is holding 60,000 units and the dividend is reinvested at NAV per unit? A. RM 93,000 B. RM 92,000 C. RM 90,000 D. RM 91,500 25. NAV per unit of Fund C is RM 0.89, assuming there is 5% service charge and no redemption charge, how much Mr. Lee is going to get if he redeem 5,000 units of his investment in Fund C? A. RM 4,450 B. RM 4,227.50 C. RM 4,672.50 D. RM 4,500 Set 2 / NSG Premier Consultants

26. NAV per unit of Fund D is RM 1.00, Management fee is 1.5%, Service charge is 5% and Trustee fee is 0.08%. How much is the selling price per unit of Fund D? A. RM 1.66 B. RM 1.05 C. RM 0.95 D. RM 0.94 27. NAV per unit of Fund E is RM 1.00, Management fee is 1.5%, Service charge is 5%, Redemption Charge is 2% and Trustee fee 0.08%. How much is the buying price per unit of Fund D? A. RM 1.66 B. RM 1.05 C. RM 0.95 D. RM 0.98 28. If NAV per unit of Fund F is RM 0.98, service charge is RM 0.05, no redemption charge. What is the amount that an investor would receive if he wants to redeem his 10,000 units? A. RM 9,800 B. RM 9,300 C. RM 10,300 D. RM 10,000 29. One of the benefit of Unit Trust Investment is Liquidity. What does it mean by liquidity in unit trust investment? A. Can redeem at any business day and get back the money in a very short time. B. Can get back the money without any notice. C. Can withdraw the investment in cooling-off period and get back the full investment. D. Holding of the investment in unit trust is just like holding the cash in hand. 30. “Buying Price” in Unit Trust means A. NAV + Service Charge C. NAV – Redemption Charge

B. NAV + Redemption Charge D. NAV – Management Fee

31. “Selling Price” in Unit Trust means A. NAV + Management Fee + Trustee Fee C. NAV + Service Charge + Trustee Fee

B. NAV + Trustee Fee D. NAV + Service Charge

32. When the MANAGEMENT COMPANY is managing the total fees and expenses well, A. The MER will increase B. The Management Fee will decrease C. The MER will decrease D. The Initial Service Charge will increase 33. What is “NAV per unit”? A. Selling Price – Management Fee B. Selling Price – Initial Service Charge C. Buying Price + Initial Service Charge D. Selling Price – Management Fee – Trustee Fee 34. If the NAV per unit of Fund A is RM 1.05, service charge is 5 cents, no redemption charge, management fee is 1.5% and trustee fee is 0.08%. The buying price of Fund A is A. RM 1.05 B. RM 1.10 C. RM 0.93 D. RM 0.98

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35. Based on the information in Question 34, the selling price of Fund A is A. RM 1.05 B. RM 1.10 C. RM 0.93 D. RM 0.98 36. Which of the followings are improper while approaching a potential investor? I. Fund A is ranked 1 st in the Lipper Funds performance Table, so its future return is definitely the best. II. Invest in Fund B, you are guaranteed to receive at least 10% of dividend every year. III. Invest in Fund C as its dividend is highest among the others. A. II B. I & II C. III D. All of the above E. II & III 37. A client has RM 20,000 and how long would it take to double his money at an assumed investment earning rate of 8% per annum? A. 9 years B. 10 years C. 12 years D. 6 years 38. Encik Ali has an intention to buy property for investment, however his RM 5,000 is not enough to cover the down payment of the property and he do not want to engage into any loan facility, your suggestion is: A. Buy aggressive growth fund B. Buy Property trust fund C. Put the RM 5,000 into Fix Deposit D. To invest in Stock Market 39. _________ sets out the obligations and rights of the trustee, manager and unitholders. A. Prospectus B. Agreement C. Trust Deed D. Certificate 40. _________is to be given to potential and existing investors, so that they have the necessary information to make an informed decision. A. Prospectus B. Agreement C. Trust Deed D. Certificate 41. If the buying price of a unit is RM 1.10, NAV is RM 1.09 and selling price is RM 1.15, how much does Mr. Y have to pay if he wish to purchase 1,000 units? A. RM 1,100 B. RM 1,090 C. RM 1,150 D. RM 1,000 42. According to Question 41, how much is the service charge of the fund? A. 5 cents B. 5.5 % C. 1 cent D. 4.5 % 43. Mr. Lai has RM 51,000 in EPF A/C I, how much he can withdraw to invest in unit trust fund? A. Not at all B. RM 1,000 C. RM 200 D. RM 51,000

trust fund? A. RM 20,000 B. RM 2,000

C. RM 1,000

D. RM 50,000

45. What are Closed-ended Unit Trusts? A. The price fluctuate within the day. B. The units are not listed on the KLSE. C. They are Property Trust. D. They are Islamic Unit Trusts. 46. What are Open-ended Unit Trusts? A. The price fluctuate within the day. B. The fund manager has to buy back from the investor, if the investor would like to redeem. C. Transactions are through the stock broker. D. They are property trust. 47. “ Selling Price” in Unit Trust means A. NAV + Redemption Charge B. NAV + Initial Service Charge C. NAV + Management Fee D. NAV + Trustee Fee 48. Which of the following statement is valid in regards to the declaration of bonus unit of a unit trust fund? A. The NAV of the fund will be decreased. B. The unit price will drop. C. The number of units in circulation will be decreased. D. The profit of the fund will drop. 49. How is the buying price of open-ended fund determined? A. By dividing the total value of the fund with the units in circulation and adjusted for redemption charge (if any) B. At the discretion of the Management Company C. By demand and supply D. By diving the NAV of the fund with the units in circulation. 50. How is the selling price of close-ended fund determined? A. By dividing the total value of the fund with the units in circulation and adjusted for redemption charge (if any) B. At the discretion of the Management Company C. By demand and supply D. By diving the NAV of the fund with the units in circulation.

44. Mr. Lee has totally RM 100,000 in EPF A/C, how much he can withdraw to invest in unit Set 2 / NSG Premier Consultants

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51. Which of the following are valid? I. The dividend for Income Fund will be higher. II. The risk for growth fund is generally higher than balance fund. III. Equity unit trusts can also take the form of income fund. A. I & II B. I C. II D. I , II & III 52. Which of the following is the perfect investment vehicle for regular savers? A. Property B. Current A/C C. Unit Trust D. Future & Option 53. Among the followings which one has the highest liquidity? A. Property B. Business Ventures C. Unit Trust D. Saving A/C 54. Which of the following has the highest investment risk? A. Financial derivative products B. Unit Trust C. Fixed Deposit D. Saving A/C 55. In a close-ended unit trust, buying and selling is done A. Through the manager of the fund B. Through the stock exchange C. Through the trustee of the fund D. Through the security commission

C. Property Fund

D. Bond Fund

60. Which of the following is valid? A. Listed trusts are closed-ended funds as the number of units is restricted at the time the investments were floated on the stock exchange. B. All equity funds are open-ended fund. C. There is no capital gain for Bond Fund. D. The return of Close-ended fund is higher compare to open-ended fund. 61. Which of the followings are valid? I. Index funds are invested in a range of securities whose performance will most closely match that of the KLSE Composite Index. II. Income fund invest mainly in corporate bonds government securities and liquid securities and liquid security like bills and cash. III. Open-ended fund are not listed on the stock exchange. IV. The prices of open-ended fund is determined by the NAV of the fund. A. I & II B. I , II & III C. All of the above D. III & IV

56. The basic requirement for investment with EPF fund is: A. RM 55,000 in A/C 1 B. RM 50,000 in A/C 1 C. RM 50,000 in A/C 2 D. RM 55,000 in A/C 3

62. Which of the following is incorrect? A. PNB launched the 1 st national Bumiputra unit trust fund – the Amanah Saham National (ASN) in 1981. B. The second national Bumiputra unit trust fund – the Amanah Saham Bumiputra (ASB) was launched in 1990. C. In the year of 1993, The Securities Commission Act was passed. D. The a st unit trust company in Malaysia was formed in 1963.

57. Which of the following description is incorrect? A. KL Mutual Fund is the biggest fund management company in Malaysia. B. Permodalan National Bhd (PNB) is the biggest fund manager in Malaysia. C. The first unit trust management company in Malaysia was formed in 1959. D. FMUTM was formed in 1993.

63. Which of the following is correct? A. Initial service charge = Selling Price – NAV B. Redemption Charge = Selling Price – NAV C. Management Fee = Selling Price – NAV D. Trustee Fee = Selling Price – NAV

58. Which of the following is the description of Index Fund? A. The objective of the fund is to beat KLCI. B. The performance will be closely match with KLCI. C. It is a close-ended fund. D. The purchase and sell have to be done through stock broker.

64. Unit Trusts in Malaysia are allowed to invest in the following, except: A. Fixed Income Instrument B. Stock C. Commodity D. Bond

59. Which is the most common from of listed trust? A. Index Fund B. Balance Fund Set 2 / NSG Premier Consultants

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65. Which of the following shall be disclosed in the prospectus? I. The management fee II. The initial service charge III. The Investment Objective IV. The Investment Strategy A. I & II B. All of the above C. III & IV D. II , III & IV 66. In general, which of the following has the lowest risk? A. Fixed Deposit B. Property C. Share D. Future & Option 67. Which of the following is the definition of Blue Chips? A. Largest, well-capitalized corporations. B. Small to medium size companies. C. Unit trust management company. D. Property fund. 68. Which of the following is not the contents of annual report? A. Fund investment strategy B. Asset allocation of the fund. C. Investment risks of the fund. D. Auditor's Report 69. The NAV is the real or actual value of the fund. Its calculation consists of the followings except: A. All uninvested cash and cash balances. B. The value of the equity investment portfolio. C. The cost of brokerage, stamp duty and other charges in respect of the portfolio of investment. D. The initial service charge. 70. ___________ is a return declared to unitholders in the forms of unit. A. Profit B. Bonus issue C. Dividend D. Net Income 71. __________ is a return declared to unitholders in the forms of cash. A. Profit B. Bonus issue C. Dividend D. Net Income 72. According to Guidelines on Unit Trust Fund, a fund which has a financial year ended at 30 June, has to send out the annual report by _________ A. 15 July B. 31 July C. 31 August D. 30 June Set 2 / NSG Premier Consultants

73. Generally, the volatility or risk element of ________ is lower than that of equity funds like growth fund. A. Property trust B. Close-ended fund C. Open-ended fund D. Income fund 74. According to guidelines to the financing of unit trusts issued by SC on 30 November 1995, the maximum margin of finance for purchases of unit trusts is ___________ . A. 50% B. 33% C. 67% D. 90% 75. MER measure the _________ of the Management Company. A. Profitability B. Efficiency C. Management Fee D. Income 76. Regulation of the unit trust industry has been entrusted to _____________ . A. FMUTM B. Bank Negara C. Securities Commission D. Trustee 77. Which of the following are expenses of a unit trust scheme? I. Management Fees II. Auditor fees III. Trustee Fee IV. Cost of sending out reports to unitholders A. I & III B. I C. II D. All of the above 78. According to the Guidelines On Unit Trust Funds, a unit trust fund may invest in share capital of any single issuer up to ___________ of its NAV. A. 50 % B. 30% C. 10% D. 20% 79. According to the Guideline On Unit Trust Funds, a unit trust fund may invest in _______________ up to 10% of its net asset value. A. collective investment scheme B. KLSE C. Property D. Closed-ended fund 80. One of the unit trust fund features is A. All are growth fund. B. Its is close-ended fund. C. Prices are based on NAV per unit. D. Dividend is higher than FD interest rate. 5