CUTExa

m
SPOT
QUESTI
ON

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1. Unit Trust Scheme that was among the top ten performers last year is
likely to:
A. End up among the top ten performers this year.
B. Be extremely difficult to predict how well a unit trust scheme will performed
this year based on its performance last year.
C. Rank somewhere in the middle this year.
D. Be among the bottom ten unit trust scheme this year.

2. What do you understand by the term “call margin” in relation to financing

unit trust investment?
A. It is an amount the investor might have to pay his/her financier if the credit
exposure of a unit trust loan falls beneath a certain level.
B. It is a type of charges imposed on futures contract.
C. It is the financier’s marked-up margin imposed on top of the based lending
rate applicable for the unit trust loan.
D. It is a type of processing fees imposed by the financier in relation to
financing of unit trust investment.

3. If an investor is able to tolerate high risks and prefers long term capital
gains to short term income, which of the following funds is the most
suitable for her?
A. Growth Fund.
B. Income Fund.
C. Balanced Fund.
D. Bon Fund.

4. The fund manager of a unit trust scheme is allowed to charge management

fee. The fees…
A. Mainly used to cover the management expenses incurred by the manager in
managing the scheme.
B. Used for the purpose of registering the unit holders with trustee.
C. Levied by the manager on the investment made by investors to cover the
commissions paid to agent.
D. Also known as a advisory fee charged by the trustee.

5. A unit trust scheme (UTS) is

A. An investment scheme in which you are always guaranteed with positive
return.
B. A fund when the investor’s objective are always met.
C. A global fund aimed at stimulating investment in high technology projects.
D. An investment scheme which pools money from many investors who share
similar financial objectives.

6. If the investment return is 10% per annum, marginal tax rate is 20% and
inflation rate is 5% per annum, what is effective return after tax and
inflation?
A. 3%
B. 2.5%
C. 5%
D. 4%

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7. From previous question it is clear that inflation can erode one’s purchasing
power. How can an investor hedge against inflation?
A. Cut down all the unnecessary expenses and keep the money at home.
B. None of the optional answer is correct.
C. Invest the money in an instrument that can generate higher returns than the
inflation rate.
D. Lower the tax rate of the investment.

8. For every unit trust fund, how many report must Unit Trust Management
Company publish each financial year for unit holder?
A. At least one.
B. At least four.
C. At least three.
D. At least two.

9. Which of the following is NOT true?

A. Generally, the portfolio of unit trust investment is determined by the fund
manager.
B. Unit holders do not directly purchase the security and ownership of the fund
is divided into units.
C. The portfolio of investment is allowed to include only one asset class
D. A unit trust is an investment mechanism which allows investors to share
similar financial objectives to pool their correct.

10. Which of the following is (are) TRUE about Bond Fund?

i. It is best to buy when interest rate are peaking and bond yields are high.
ii. Manager’s fees and charges are generally lower compared to equity fund.
iii. Fund prices will falls when interest rates rise.
iv. No matter when you redeemed your investment, you will get back at
least your principal amount or your capital you had invested.

A. ii only.
B. all answers are correct.
C. i, ii and iii.
D. i and iii.

11. One of the major benefits investing in unit trusts is to gain access to the
experienced of a professional fund manager. Which terms best describes a
professional fund manager?
A. Someone who has bought and sold so many investment in his lifetimes
B. Someone who has been professionally trained in the field of fund
management
C. Someone who always manages in excess of RM500 million
D. A friend who always recommends the best stocks to buy

12. Which of the following could not be used as an investment benchmark

when assessing investment performance?
A. The Kuala Lumpur Interbank Offer Rate (KLIBOR)
B. The current account situation as a percentage of a gross domestic product
(GDP)
C. The 5 years bond rate
D. The Kuala Lumpur Composite Index (KLCI)

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13. _______________is also the term used for the price at which units are sold to
public. It is similar to the unit net asset value (NAV) of the unit trust fund.
A. Offer price
B. Buying price
C. Service charge
D. Redemption price

Question 14 & 15 related

An investor had invested in a single amount of money in a unit trust fund at RM0.80
per unit in the first year, and subsequently purchased another 20,000 units in the
second year. At the end of the third year, he decided to redeem all his investment at
buying price RM0.90 per unit and the total proceed was RM79,200.

14. How many units was he entitled for the investment he made in the first
year?
A. 68,000 units
B. none answer is correct
C. 88,000 units
D. 79,200 units

15. How much did he invest in the first year?

A. RM16,000
B. None answer is correct
C. RM70,400
D. RM54,400

16. Assuming an investor is practicing the principle of dollar cost averaging.

Given the following data, calculate the average cost per unit for the
investor.
Unit Prices Amount Invested
Jan 200x RM0.50 RM1500
Feb 200x RM0.60 RM1500
Mar 200x RM0.70 RM1500

A. RM0.59
B. RM0.62
C. RM0.61
D. RM0.60

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17. Pointing to the latest performance table, Mei Ling enthusiastically tells
you, “Look the OMG Small Cap Fund was up 36% last month. I think this
fund may be best for me to invest”. Knowing choosing fund merely based
on the best record in the previous month is not in her best interest: what
other aspect would you advice her to look into before investing in the
fund?
i. Consistency of the fund’s performance in medium and long term
ii. Her own financial goal and decide how much risks she can afford to take
iii. Suitability of the fund’s investment objectives and riskiness with her own
investment goal and risk profile
iv. Total feels and charges imposed by the fund and the service level provided

A. i & ii
B. All answers are correct
C. i, ii & iii
D. ii & iii

Question 18, 19 & 20 related

Given data:
i. Initial investment: RM80,000
ii. Term of investment: 3 years
iii. Expected investment return before fees and expenses: 10% per annum
iv. Ongoing management fee: 1.5% per annum
v. Initial service charge: 5%

18. Calculate the expected value of investment at the end of 3rd year
A. RM97,317
B. RM106,480
C. RM102,183
D. RM101,156

19. Now assume that the ongoing management fee is 1.0% instead of 1.5%,
what is the expected value of investment at the end of third year
A. RM98,669
B. RM106,480
C. RM103,602
D. RM101,156

20. How long does it approximately take for the expected value of the initial
investment to reach RM160,000?
A. 7.2 years
B. 20.6 years
C. 14.4 years
D. 8.5 years

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21. Which of the following are parties to a unit trust scheme?

i. Unit trust management company

ii. Trustee
iii. Investing manager
iv. Unit holder

A. ii & iii
B. i, ii & iv
C. All answer are correct
D. ii, iii & iv

22. If on Thursday, 4th June 200x, the published NAV per unit is RM0.65 and
the closing NAV per unit calculated at the end of the day is RM0.66, given
the above information, if an investor was allocated 10,000 units for her
investment made on the same day, how much money has she paid in total
for her investment? (assume forward pricing policy was adopted and the
applicable initial sales charge is 5%)
A. RM6,600
B. RM6,825
C. RM6,500
D. RM6,930

23. Choose the correct statements regarding Aggressive Growth Fund

i. Generally these funds invest in common stocks with a high potential for
rapid growth and capital appreciation
ii. These funds seek to provide maximum capital growth with less emphasis
on distribution or interest income
iii. These fund generally incur higher risk in an effort to secure more
pronounced growth
iv. Investors who must conserve their principle or who must maximize
current income are most suitable to invest in these fund

A. i, ii & iii
B. All answers are correct
C. i, iii, iv
D. ii, iii, iv

24, 25 & 26 are related:

Net Asset Value cum distribution for a unit trust fund is RM200 million. Unit in
circulation is 380 million units and the fund manager is charging a 5% initial service
charge (please use 3 decimal places for calculation purposes).

24. If the distribution declared is 3.5 cents per unit, how much is the selling
price ex-distribution?
A. RM0.49
B. RM1.96
C. RM1.86
D. RM0.52

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25. Based on the above answer and assume that a client invested RM10,000 ex-
distribution, how many units will she get for her investment?
A. 20,408 units
B. 5,102 units
C. 5,120 units
D. 19,434 units

26. If the initial service charge is reduced from 5% to 3% and based on the
selling price ex-distribution, how much savings can the client get given the
same number of units?
A. RM326.00
B. RM200.00
C. RM327.95
D. RM184.93

27. “Liquid assets” mean ___________ in the context of investment

A. Assets that cannot be sold easily and must be auctioned in order to obtain
cash
B. Ensuring that there is always enough funds in the bank account
C. Assets that depends to a large extent on the level of cash and cash
equivalents
D. Assets that can be converted into cash or sold easily in the market place

28. Which of the following can be found in the prospectus of unit trust fund?
i. Investment objectives
ii. Authorized investments
iii. Fees & charges
iv. Trust expenses

A. i, iii & iv
B. All answer are correct
C. i, ii & iii
D. i & iii

29. Which statement regarding the EPF members withdrawal investment

scheme is CORRECT?
A. Investment can be made with any unit trust scheme
B. Balance in account 2 is not eligible for this scheme
C. Members can withdraw funds from the EPF once in every two months
D. The maximum age for the qualified member is 60

30. A redemption or withdrawal fee charged by a unit trust scheme is

A. A fee charged by trustee
B. A fee charged by some unit trust management companies when unit holder
wished to withdraw
C. A fee charged by banks on customer withdrawal from their savings account
D. A fee levied for customers who owns a unit trust scheme with redeeming
features

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Question 31 & 32 are related:

31. Supposed that part of the asset allocation of fund X, and fund Y are as
follows:
Fund X Fund Y
Equity 70% 0%
Money Market 10% 85%

Fund X is most appropriate to be classified as:

A. Property fund
B. Money market fund
C. Fixed income fund
D. Equity fund

32. Which of the following statement is (are) CORRECT?

i. When interest rate is decreasing, value of fund Y will be more adversely
affected
ii. When interest rate is decreasing, value of fund Y will be more positively
affected
iii. Value of fund X will be more positively affected when stock market is
increasing

A. ii & iii
B. All answer are correct
C. i & iii
D. i only

33. What is the term used for an investor who opt to received their income
distribution in the form of units instead of cash?
A. cash distribution
B. repurchase price
C. distribution investment
D. distribution

34. Dollar Cost Averaging is:

A. A systematic way of regular investment with fixed amount of money
B. A way to sell unit trust funds and to minimized the capital gains
C. A way to purchase unit trust funds and minimized the service charge
D. A strategy that entails buying low and selling high

35. Which of the following is the most appropriate thing to do if you meet a
person who has never invested in unit trust and does not feel comfortable
to invest in unit trust?
A. Show her the marketing brochure and take them back as you need to show
the brochure to other clients
B. Show her the excellent performance record of the unit trust fund and tell her
that her performance will repeat again this year
C. Comfort her by letting her know that unit trust is an investment with no risk
D. Let the potential investor have a prospectus and walk thru with her

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36. Which of the following is associated with fixed income unit trust?
A. Aggressive growth fund can be classified as fixed income unit trust
B. Generally the returns are lower than equity unit trust fund
C. The performance of the trust is linked to the performance of equity market
D. A major portion of the trust is generally held in securities in listed companies

37. What must you NOT say to a potential investor?

i. Unit trust is as safe as fixed deposit
ii. The market value of your capital maybe lower than initially invested
iii. Return in unit trust is not fixed
iv. You should diversify your portfolio and have some fixed deposit

A. ii, iii & iv

B. All answer are correct
C. i, ii & iii
D. i only

38. One of your friends tells you “By the time I retire in year 2020, I believe the
KLCI will be many times what it is today. I’m happy with that. Give me a
fund that can best deliver the same result”. What would you recommend to
him?
A. Buy an index tracking fund using KLCI as the benchmark
B. For such a long investment horizon, don’t worry buy any funds
C. Buy a balance fund because it’s investment return a less volatile than KLCI
D. Buy a growth fund because it can give him return better than KLCI by year
2020

39. An important part of increasing return of a unit trust scheme is for the
fund to borrow and invest:
A. This statement is true as this is the nature of investment
B. None of the optional answer is correct
C. This statement is wrong because unit trust scheme are not allowed to
borrow
D. This statement is true because it is a basic fundamental principal of
investment

40. A collective investment scheme is:

A. A collection of investment which cannot be sold without permission of the
owners
B. Another term used to describe a unit trust scheme
C. An investment fund which invest only in specific collection of shares
D. A type of fund that allows everyone to collect money from others much like
charities

41. A decrease in the MER calculated from the above indicates:

A. The UTMC is not managing the total fees and expenses well
B. The UTMC is managing the total fees and expenses well
C. The UTMC must be overpay for the administrative fee
D. The annual management fee must be revised downward

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42. In the annual report of ABC Millennium Fund, the expenses incurred by the
fund using the financial year 200x 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 RM235,500,528
Calculate the management expenses ratio (MER) of the fund for the financial year:
A. 0.07%
B. 0.01%
C. 1.58%
D. 1.50%

43. Which of the following forms the minimum standards of conduct expected
of registered person dealing in unit trust (PDUT) and are intended to be a
guide to ascertain whether a registered PDUT is acting in a manner which
continue to satisfy the minimum standard of registration?
A. Code of ethics and standards of professional conducts for multilevel
marketing
B. None of the optional answer is correct
C. Code of ethics and standards of professional conducts
D. Code of ethics and professionalism

44. In all investment related industries, what is the most important

component for investors to have in the product they are purchasing?
A. Risk
B. Relationship
C. Confidence
D. Performance

45. To meet the challenges posed by the new and sophisticated customers,
PDUT must strived to do the following EXCEPT:
A. Hard sell
B. Acquire suitable professional qualification
C. Fine tune their product knowledge
D. Maintain high ethical standard in their marketing

46. The maximum initial service charge fee charged for each distribution
channel has to be disclosed in the _____________________ of the respective unit
trust scheme
A. Marketing material
B. All answer are correct
C. Prospectus
D. Deed

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47. In order to maintain honesty, dignity and integrity, a PDUT at all time must
not misrepresent or recklessly represent:
A. The products and or its characteristic offered by the management company
he or she represents
B. Those mentioned by all the optional answers
C. His or her qualification or that of the management company he or she
represents
D. The past performance of the unit trust scheme

48. Which of the following provides a common platform for UTMC to discuss
issues in relating to the unit trust industries?
A. Securities Commission
B. Ministry Of Finance
C. Federation of Malaysia Unit Trust Managers(FMUTM) or FIMM
D. Registrar Of Companies

49. An investor had invested a total of RM200k in unit trust fund. How much
has he obtained from the end financier to finance his investment?
A. RM200,000
B. None of the option answer is correct
C. RM134,000
D. RM66,000

50. In marketing unit trust scheme, providing quality services includes

A. Providing convenient choices in handling investors cash and payments
B. All answer are correct
C. Providing clear and precise reporting
D. Been responsive to customer request, queries and complaints

51. If an investor is able to tolerate high risks and prefers long term capital
gains to short term income, which of the following funds is the most
suitable for her?
A. Balanced Fund.
B. Income Fund.
C. Bon Fund.
D. Growth Fund.

52. Which of the following is not the right of the unit holder?
A. To redeem units
B. To select shares for the unit trust scheme portfolio
C. To received profiles of board of directors
D. To obtain information about unit trust scheme and its performance

53. Which of the following increases the overall risk level of your portfolio?
A. Shifting your investment from stocks to money market
B. Shifting your investment from stocks to fixed deposit
C. Shifting your investment from stocks to bonds
D. Shifting your investment from bonds to stocks

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54. The major factor that end financiers will assess in determining whether to
extend credits to an investor who wished to finance a unit trust investment
scheme is
A. The credit worthiness of the investor
B. The credential of the investment committee members
C. The current prevailing interest rate on credit cards owned by the investors
D. The name of the unit trust management company in which the investor
wished to make an investment

55. Investors who invested in unit trust with borrowed money

A. Are guaranteed to make profit in longer term
B. Need to keep on investing until the loan is fully settled
C. Will not be affected by changes in the based lending rate set by their end
financiers
D. Will only make profits if returns from their investment are higher than the
cost of their borrowings

56. In order to overcome the adverse impact of inflation

A. Investors should only invest in property trust
B. None of the optional answer is correct
C. Investors need to buy unit trust when the market prices are low
D. Investors need to preserve the purchasing power of their original
investment

57. What happen when a unit split 1:2 is declared?

A. The unit price decreases proportionately
B. None of the answer is correct
C. The units in circulation doubled
D. The unit priced doubled

Question 58 & 59 are related:

Given data:

i. Number of units held before unit split : 18,000 units

ii. Total value of the investment before unit split : RM6,000
iii. Unit split ratio 1:3

58. How many units will the investor hold after the unit split exercise?
A. 15,000 units
B. 18,000 units
C. 6,000 units
D. 24,000 units

59. What is her total investment value after the unit split exercise?
A. RM8,000
B. RM6,000
C. None answer are correct
D. RM10,000

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60. UTMC must issue a prospectus for each of its unit trust scheme. The UTMC
is required to:
A. Send a copy to any potential investor who request a copy
B. Provide complete information
C. All the answer are correct
D. Issue prospectus at least once a year

61. The net asset value of an equity index tracking fund:

A. Will not react at all to the ups and downs of stock market
B. Will fluctuate in response to changes in interest rates only
C. None answer is correct
D. Will fluctuate in response to changes in the price of equity index component

62. Amongst others, the calculation of net asset value (NAV) of a unit trust
scheme involves:
i. The value of the equity investment
ii. Cost and charges involved in various transaction of the scheme
iii. The value of the money market instrument (if applicable)
iv. Accrued gross distribution and interest income after deduction of
relevant fees and expenses such as annual management fees and
administrative expenses

A. i, iii & iv
B. i, ii & iii
C. All answers are correct
D. i & ii

63. Unit trust offer an effective wayto pursue lifetime financial goals with
advantages that would be difficult to achieve by laypersons invest on their
own. The advantages include:
i. Ongoing professional fund management
ii. Diversification of assets with reduced risk
iii. Can be bought and sold easily
iv. More favourable transaction cost for unit trust due to large investment
amount
v. Flexibility to switch between different type of funds (applicable to
certain unit trust)

A. i, ii, iii & v

B. i, ii, iii & iv
C. All answers are correct
D. i, ii & iii

64. Raw return is:

A. A measure that shows the total return achieved by holding the investment
over the entire period between buying and selling
B. A form of measure which is superior to the annualized return
C. The only return measure that accounts for the value of time
D. The best measure for unit trust return

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65. Market risk is a time of risk involves investing in equity trust and in
means:
A. Unit holders might be forced to provide additional funds to restore their loan
margin when the value of the unit trust scheme dropped drastically.
B. Poor management of the scheme will jeopardized the investment of unit
holders through the lost of their capital invested in the scheme
C. None of the answer is correct
D. Stock value underlying the net asset value of the unit trust scheme fluctuates
in response to the activities of individual companies and general market or
economic conditions. Such movement will cause the NAV or prices of units to
fall as well as rise.

66. Risk/returns characteristic can vary significantly between two funds.

Which of the following statement is not a correct comparison of the
risk/returns trade off between investing in a capital growth fund (G) and a
capital protection fund (P)?
A. P’s losses are potentially less because it takes less risk
B. G need to adopt a riskier investment strategy to achieve potentially higher
returns
C. Expect a lower return from P because the fund takes less risk
D. G’s return are potentially higher than P’s because G is less risky

67. What would you not normally expect to find in the annual report of the
unit trust scheme?
A. Fund composition and statement of asset allocation
B. Auditors reports
C. Unit prices of competitors products
D. Statement of assets and liabilities of the unit trust scheme

68. When was the first unit trust management company setup in Malaysia?
A. 1959
B. 1950
C. 1960
D. 1949

69. Prices of listed close-ended trust are determined in the following manner
A. The UTMC computes the daily prices upon close of business day
B. Prices are determined by the demand and supply in the market such as
Bursa Malaysia
C. The investment committee set the daily prices
D. The total value of asset is divided by the number of units in circulation

70. Daily net asset value of unit trust schemes are available through:
A. Visiting the unit trust management companies, head office or its branches
B. Calling the UTMC
C. All answer are correct
D. Referring to the unit trust pricing table published by major newspaper

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71. Which of the following statement is CORRECT?
A. Real Estate Investment Trust (REIT’s) are not allowed to be listed
B. The portfolio of a Real Estate Investment Trust (REIT’s) can be switch to
equity easily as the asset are highly liquid
C. Unlisted unit trust are not allowed to invest in REIT’s
D. The income of REIT’s is mainly derived from the rental income and the
capital appreciation of the property held by the trust

72. In order to enhance professionalism in marketing of unit trust

A. It is important to observe as many marketing leads as possible
B. It is important to provide superior service to clients and attend to their
needs
C. It is important to recommend to potential clients the best performig unit
trust regardless of the suitability of the fund
D. It is irrelevant what promises are made to clients with respect to investment
returns

73. Which of the following statement is NOT valid?

A. Unit holders directly purchase the securities in the investment portfolio of
the unit trust
B. Unit trust are professionally managed by the utmc
C. value of a unit will fluctuate in line with the changes in the net asset value of
the unit trust
D. Investors are entitled to receive unit trust certificate or statement for his
investment

74. Generally what are the possible forms of returns on investment can an
investor expect from investing in unit trust?
i. Dividends
ii. Capital appreciation
iii. Interest

A. ii & iii
B. i & iii
C. All answer are correct
D. i & ii

75. In year 1995, Cik Jamal put RM50,000 in an investment that earned him
9% per annum. Supposed the investment is able to deliver the above
yearly return for the past as well the coming years, when will his money
doubled?
A. Year 2005
B. Year 2003
C. Year 2007
D. Year 2000

76. An investor wants to gain exposure to the commercial property market in

Kuala Lumpur but with only a small amount of money (RM5,000.00) or she
was not able to invest at all. Which is a good investment alternative for
her?
A. Invest in any open ended fund
B. Invest in fixed income fund
C. Invest in real estate property fund
D. Invest in equity index fund

15
77. Please identify features of an open ended unit trust
i. It is a collective investment scheme that provide an opportunity for small
investors to participate in stock market investment
ii. Ownership of the fund is divided into units of entitlement
iii. If the market condition is not encouraging, the unit holders will not be
able to liquidate their investment as other investors are not keen to
purchase

A. ii & iii
B. i & iii
C. All answer are correct
D. i & ii

78. Encik Adam has invested RM5,000.00 in ABC growth fund managed by ABC
Unit Trust Management Berhad. Encik Adam now owns
A. RM5,000.00 worth of direct ownership of investment portfolio held by ABC
Growth Fund
B. RM5,000.00 worth of shares in ABC Unit Trust Management Berhad
C. All answer are correct
D. RM5,000.00 worth of units of entitlement in ABC Growth Fund

79. If NAV of a fund is RM1.00, the initial charge is 1.5% and no exit fee is
imposed. How much would an investor received if he redeems 10,000
units?
A. RM10,150
B. RM9,850
C. No answer is correct
D. RM10,000

Question 80 & 81 are related:

ZARINA HAMZAH
i. Investment A RM64,000 RM0.00
ii. Investment B RM0.00 RM64,000
RM64,000 RM64,000

80. Supposed that investment A provide an average annual return of 8.5% and
the value of En Hamzah investment doubled approximately 1.27 years
earlier than those of Cik Zarina, what is the average annual return of
investment B?
A. Approximately 10%
B. Approximately 7.39%
C. No answer is correct
D. Approximately 9.77%

81. Supposed that the amount of the cash won by them is RM128,000 each and
all else being unchanged, what is the average annual return of investment
B?
A. Approximately 20%
B. Approximately 14.78%
C. Approximately 19.54%
D. No answer is correct

16
82. Hasnah invested all the money that she collected from her parent and
relative during Hari Raya in fund A and fund B on 13th January 200x. The
unit prices at the close of business on the day and other information
related to her investment are as follow:

FUND A FUND B
i. Total invested RM1,000 RM1,000
ii. NAV per unit RM0.2700 RM0.8295
iii. Selling Price Per Unit RM0.2700 RM0.8295
iv. Initial Sales Charge 5% 0%
v. Exit Fee 0% 2%
vi. Pricing Policy Forward Forward

Calculate the total number of units received by Hasnah for her investment made in
Fund A (W) and B (X) respectively
A. W=3,407.41 units X=1,145.27 units
B. W=3,527.33 units X=1,205.55 units
C. No answer is correct
D. W=3,703.70 units X=1,265.82 units

Question 83, 84 & 85 are related:

An investor had invested a single amount of money in a unit trust fund at RM0.50
per unit in the first year and subsequently purchased another 10,000 units at
RM0.52 per unit in second year. At the end of third year, he decided to redeem his
investment at buying price RM0.60 per unit and the total proceed was RM15,000

83. How many units was he entitled for the investment he made in the first
year?
A. 15,000 units
B. 25,000 units
C. 35,000 units
D. None of the above is correct

84. What is the total amount of money he had invested in the first and second
year?
A. RM7,500
B. RM5,200
C. RM12,700
D. None of the above is correct

85. Upon redemption in the 3rd year, calculate the raw return of the
investment that he made in the 1st year. (Assume no distribution was paid
during the period)
A. 15%
B. 18%
C. 20%
D. 100%

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Question 86, 87, 88 & 89 are related:

The NAV cum-distribution of Fund B is RM292,500,000 and units in circulation is

195,000,000. The fund declared distribution of 15 cents per unit, and the manager is
charging 5% service charge.

86. What is the NAV per unit cum-distribution?

A. RM1.50
B. RM1.35
C. RM1.45
D. RM1.60

87. What is the NAV per unit ex-distribution?

A. RM1.50
B. RM1.35
C. RM1.45
D. RM1.60

88. What is the investment value of Mr. Samuel before the declaration of
distribution, if he is holding 60,000 units?
A. RM93,000
B. RM92,000
C. RM90,000
D. RM91,500

89. Assuming no tax, what is the investment value of Mr Samuel after the
declaration of distribution, if he is holding 60,000 units and the
distribution is to reinvest the NAV per unit?
A. RM93,000
B. RM92,000
C. RM90,000
D. RM91,500

Question 90 & 91 are related:

A family spent RM25,000 on goods and services last year and RM26,125 this year.

90. Assumed that the pattern value of consumptions and the inflation rate
remain unchanged. How much money will the family need next year to
maintain the same living standard as this year?
A. RM26,125
B. RM27,301
C. No Answer
D. RM27,250

91. Based on the above inflation rate, if an investor earns a 5% return for his
investment, his marginal tax is 20%. What is his effective return after tax
and deduction?
A. -0.5%
B. 15%
C. -0.3%
D. -15%

18
92. A unit split in effect does not add value to the unit trust investors’
investment holdings, but ___________________
A. Make sure that the fund managers are able to earn their fees
B. Is used by UTMC to lower the NAV per unit, thus enabling new investors to
invest to the fund
C. Is used to enlarge the fund size in Ringgit term
D. Is used to reclassify the fund to penny stocks fund

93. The unit trust scheme (UTS) can only invest in securities that
A. Have been authorized in the deed of the UTS
B. Have small market capitalization with great potential for capital appreciation
in the long run
C. Are well diversified in the global market
D. Guarantee the highest returns with minimum risks

94. A listed trust is commonly known as a:

A. Universal trust
B. Closed ended trust
C. Regional trust
D. Open ended trust

95. Which of the following fund is best describe by this statement?

“The unit trust fund is managed in accordance with Syariah principles and
aims to maximize capital appreciation medium to long term by investing
mainly in equities listed on the Bursa Malaysia”
A. Fixed income funds
B. Property funds
C. Balance fund
D. Islamic funds

96. The main purpose of a prospectus is:

A. To highlight the projected returns of the unit trust scheme
B. To outline the marketing plan of the unit trust scheme
C. To provide potential and existing investors with all the necessary
information
D. To outline the profile of the target investors

97. Rank the following funds according to their level of risks from highest to
lowest:
i. Equity Growth Fund
ii. Money Market Fund
iii. Balance Fund
iv. Hedge Fund

A. ii, iii, i, iv
B. iv, i, iii, ii
C. i, iii, ii, iv
D. ii, i, iii, iv

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98. The best way for investors to minimize the impact of the initial service
charge on the unit trust investment is to:
A. Adhere to a long term buy and hold strategy, making sure that the unit
purchased match their long term investment objective
B. Invest as regular as possible and avoid lump sum investment
C. Buy and sell units as often as they can
D. Only purchase aggressive growth funds

99. An index fund is:

A. A fund that ensures returns will always be above KLCI
B. Actively manage by buying and selling stocks upon careful and rigorous
stock analysis and selection
C. Listed as one of the component securities in the Kuala Lumpur exchange
composite Index (KLCI)
D. A fund that has composition closely resembles that of the relevant index
such as KLCI

100. A unit split in effect does not add value to the unit trust investors
investment holdings, but ___________________
A. Is used to enlarge the fund size in Ringgit term
B. Is used by UTMC to lower the NAV per unit, thus enabling new investors to
invest to the fund
C. Make sure that the fund managers are able to earn their fees
D. Is used to reclassify the fund to “Penny stocks fund”

101. What is the most important benefit you will get from creating a diversified
portfolio that includes stocks, bonds and money market funds?
A. The ability to balance both risk and returns in achieving ones financial goal
B. Higher returns than the portfolio that is not diversified
C. A guarantee that the portfolio won’t suffer if the stock market falls
D. All the optional answer are correct

102. Generally, a unit trust that has 80% of its assets invested in growth stocks
would be the most appropriate investment for the preparation of:
A. An income providing savings for an 86 years old
B. An individual retirement fund for a 52 years old
C. A college fund for an 18 years old
D. None of the optional answer is correct

103. What type of investment would you most expect to find in an aggressive
growth fund?
A. Investment in capital guaranteed life insurance product
B. Shares of technology companies recently listed on the stock exchange
C. Investment in properties with regular income
D. Cash

104. Which of the following is “are” investment alternative to unit trust

A. Property
B. Direct share investment
C. Fixed deposit
D. All the optional answers are correct

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105. Halal stocks do not invest in companies involved in activities products or
services related to the following:
i. Conventional banking
ii. Telecommunications
iii. Gambling
iv. Alcoholic beverages

A. i, iii, iv
B. iii, iv
C. ii only
D. i, ii, iii, iv

106. The best way to help investors go through prospectus is to begin with:
A. Profile of the board of directors and key management staff
B. Fees and Charges
C. Key data
D. Members of investment committee

107. Which of the following offer the choices of what an investor can do with the
distribution paid by the unit trust funds:
i. Reinvest in the unit trust funds, which means the distributions buy more
units
ii. Take the money out and spend it
iii. Buy more shares of the unit trust management company

A. None answer are correct

B. i, ii
C. i, ii, iii
D. i, iii

108. Please identify features of an open ended unit trust

i. it is a collective investment scheme that provide an opportunity for small
investors to participate in stock market investment
ii. ownership of the fund is divided into units of entitlement
iii. if the market condition is not encouraging, the unit holders will not be
able to liquidate their investment as other investors are not keen to
purchase

A. ii & iii
B. I & iii
C. I & ii
D. All answer are correct

109. The unit trust funds that are available in the market could be designed to
meet the following requirements:
A. All answers are correct
B. Retirement funds
C. Long term savings
D. Child education

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110. In general which of the following type of the unit trust is likely to
depreciate most when the overall stock market falls?
A. Property trust
B. Money market trust
C. Equity trust
D. Fixed income trust

111. Which of the following best describes the disadvantages of financing

investment of a unit trust fund through borrowing?
A. In a falling share market, the value of investment in unit trust fund maybe
decreasing whilst the loan liability is constant, or increasing. The effect of
this may result in the need to increase the collateral to the financial
institution
B. The value of the unit trust fund does not fluctuate with share market price
but the loan financing
C. In the rising market, the value of the investment in unit trust fund an dthe
loan borrowed rises
D. None of the answers are correct

112. Fixed income funds are generally said to have lower risk to equity fund.
Hence what can be expected of the returns from these funds?
A. None answer is correct
B. Consistently higher than equity funds
C. Usually lower than equity funds
D. Usually higher than equity funds

113. Mabel wants to be a millionaire. If she has RM500,000.00 and can earn 8%
per annum, how long would it take to achieve her goal?
A. 8
B. 9
C. 10
D. 11

114. Generally prospectus of a unit must be renewed___________?

A. Every two years
B. Every six months
C. Every month
D. Every year

115. Which of the following best describes “Aggressive Growth Fund”?

A. The fund will invest primarily in stocks which earn significant dividend
income
B. The fund will normally generate returns which closely resemble the
performance of a stock market index, both in term of risk and return
C. Generally the fund will be invested in stocks with higher growth potential
and with higher risk characteristic
D. The fund mainly invests corporate bonds, government securities and liquid
assets

22
 ANSWER FOR CUTE SPOT QUESTION
1 B 21 B 41 B 61 D 81 D 101 A
2 A 22 A 42 C 62 C 82 B 102 C
3 A 23 A 43 C 63 C 83 A 103 B
4 A 24 A 44 A 64 A 84 C 104 D
5 D 25 D 45 A 65 D 85 C 105 A
6 A 26 D 46 B 66 D 86 A 106 C
7 C 27 D 47 B 67 C 87 B 107 B
8 D 28 B 48 C 68 A 88 C 108 C
9 C 29 B 49 C 69 B 89 C 109 A
10 A 30 B 50 B 70 C 90 B 110 C
11 B 31 D 51 D 71 D 91 A 111 A
12 B 32 C 52 B 72 B 92 B 112 C
13 B 33 C 53 D 73 A 93 A 113 B
14 A 34 A 54 A 74 D 94 D 114 D
15 D 35 D 55 D 75 B 95 D 115 C
16 A 36 B 56 D 76 C 96 C
17 B 37 D 57 B 77 D 97 B
18 A 38 A 58 D 78 D 98 A
19 A 39 C 59 B 79 D 99 D
20 D 40 B 60 C 80 A 100 B

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