9. Chapter 3 - Calculation (Quiz 2)

Assume an investor has invested a lump sum of RM25,000. 2 years later the total returns were RM27,300. Calculate the compounded return from this investment.

• 5.5%

• 4.5%

• 6.5%

• 7.5%

Initial investment: RM80,000

Term of investment: 3 years

Expected investment return before fees & expenses: 10% p.a.

On-going management fee: 1.5% p.a.

Initial service charge: 5%

What is the expected value of the investment after 3 years?

• RM97,317

• RM101,156

• RM102,183

• RM106,480

In Year 1995, Encik Jamal put RM50,000 in an investment that earned him 9.0% per annum. Suppose the investment is able to deliver the above yearly return for the past as well as the coming years, when will his money double?

• Year 2000

• Year 2003

• Year 2005

• Year 2007

8 Years ago, Mr. Ang start preparing the education fund for his child, Jeff. The value of the fund is now half of his projected education costs. What would be the expected rate of return per annum for the education fund to be fully funded at the end of 10th year ?

• 7.2%

• 4%

• 36%

• 9%

During the year-end of Fund S, the fund managers sold investments with gross proceeds of RM 2,653,843 and purchased additional investments at a gross cost of RM 946,632. The average fund size during the year was RM 5,244,789. Calculate the PTR for the year-end ended 31 December 200X.

• 0.26 times

• 0.33 times

• 0.34 times

• 0.25 times

In the annual report of ABC Millennium Fund, the expenses incurred by the fund during the financial year were:

Annual Management fee: RM3,528,673

Trustee fee: RM150,326

Auditors’ remuneration: RM16,300

Administrative expenses: RM28,418 

The average net asset value for the period was RM235,300,528.

Calculate the Management Expense Ratio (MER) of the fund for the financial year.

• 1.50%

• 1.58%

• 0.07%

• 0.01

What is the effective rate of return after tax and inflation?

Tax Rate                  20%

Inflation Rate           4.5%

Rate of Return          11%

• 4.5%

• 4%

• 4.3%

• 4.2%