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Advanced Wealth Management Course (IIBF) - Paper 1
Part II: Ch 3: Fundamental Investment concepts
Q1.
What strategies are available to eliminate timing problem?
Q2.
A bank currently offers a five-year term paying 9.25% p.a. simple interest. What would you earn on a Rs. 7,500 deposit?
Q3.
What will a Rs. 2,500 deposit grow to after earning 8.25% p.a. simple interest for 9 years?
Q4.
What should you pay for a growth bond that gives you Rs. 500 in three years time and is supposed to yield 8.75% quarterly compound?
Q5.
Key issue/s of investment timing are:
Q6.
What will be the future value of Rs. 5,000 if it is invested at 7% p.a. simple interest for 90 days?
Q7.
Rs. 2,000 is invested for three years at 9% p.a. simple interest. How much interest will be paid at the end of the period?
Q8.
We want to receive Rs. 4,500 in 4 years time. How much must we invest now at 9.5% simple interest to end up with Rs. 4,500?
Q9.
Rs. 10,500 is invested for three years at 9.25% simple interest. How much interest will be paid at the end of three years? What will the account balance be?
Q10.
If Rs. 10,000 is invested at 8.25% p.a. compounding yearly, what is the balance after four years?
Q11.
Calculate the return for Rs. 100 invested for one year at the 8% p.a. paid semi-annually?
Q12.
Portfolio spread is essential to minimize the impact of investment risk.

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