MU - S1 1998 - Personal Financial Planning

MU - S1 1998 - Personal Financial Planning - MONASH...

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Unformatted text preview: MONASH UNIVERSITY LIBRARY llllllllllll MONASH UNIVER 00 “8 . ‘VL‘K 3“} .~- 1 a _ if :JAIVIIN . FIRST SEMESTER 1998 EXAMINATIONS FACULTY OF BUSINESS AND ECONOMICS TITLE OF PAPER AFF311 1 PERSONAL FINANCIAL PLANNING INSTRUCTIONS TO CANDIDATES . CANDIDATES ARE REMINDED THAT THEY SHOULD HAVE NO BOOKS, NOTES, PAPER, CALCULATORS, PENCIL CASES OR OTHER MATERIAL IN THEIR POSSESSION UNLESS THEIR USE IS SPECIFICALLY PERMITTED BY THE FOLLOWING INSTRUCTIONS. MATERIALS ON OR UNDER YOUR DESK OR CHAIR OR ON YOUR PERSON ARE DEEMED TO BE IN YOUR POSSESSION. 2. READING TIME IS OF TEN (10) MINUTES DURATION 3. EXAMINATION IS OF THREE (3) HOURS DURATION 4. This paper consists of : EIGHT {8) QUESTIONS printed on THREE (3) pages. PLEASE CHECK BEFORE COMMENCING. 5. This is 3 FINAL paper and a CLOSED BOOK examination and students are not allowed to have any notes or text books in their possession. 6. Students are allowed to use a calculator. 7. Students must answer all questions on the examination paper. 8. Students must earn a minimum of 50% (Le. 35170) in the final examination to be eligible for a pass in the subject. I 9. THIS EXAMINATION PAPER MUST BE INSERTED IN YOUR EXAMINATION BOOKLET AT THE COMPLETION OF THE PAPER. 7083 1 CV PRINTING CONTROL AFF3111 PERSONAL FINANCIAL PLANNING Page 2 QUESTION 1. (a) The Corporations Law requires those who deal in, or give advice about securities to hold an appropriate licence. As a financial planner working for a licensed investment adviser, what are the Corporations Law requirements that apply in order for you to operate as a financial planner for the licensed adviser. 4 marks (b) Briefly discuss the Corporations Law ‘know your client rule’ 2 marks (c) Explain the Corporations Law section 849 disclosure requirements 3 marks QUESTION 2. (a) List and discuss the steps that should be incorporated in a basic risk management model. 7 marks (b) Identify and briefly explain the various forms of motor vehicle insurance that are available within the State of Victoria. 4 marks QUESTION 3. In order to make an investment recommendation to a client, there are a number of considerations that should incorporated in the investment decision. List and briefly explain these investment decision considerations. Provide an example of each item Within the context of personal financial planning. 10 marlm QUESTION 4. (a) Calculate the tax effect of a fully franked dividend of $100.00 received by an investor with a marginal tax rate of 43% (company tax rate 36%). 2 marks (b) List and briefly discuss five important risks associated with an investment in residential rental property. 5 mark (c) Asset ailocation within an investment portfolio may be described as strategic or tactical. Explain each of these terms. 3 marks 70831CV PRINTING CONTROL AFF3 111 PERSONAL FINANCIAL PLANNING Page 3 QUESTION 5. Identify and explain the various components of an eligible termination payment. 5 marks QUESTION 6. Ms Brown, a single pensioner owns a vacant block of land valued at $50,000 and a managed mortgage trust investment of $20,000 which returns 8% per annum. This is her only income apart from the aged pension. A full single pension is currently $347.80. What amount of aged pension is Ms Brovm eligible to receive? 4 marks QUESTION 7. (a) Define an enduring power of attorney, including its purpose, use and limitations. 3 marks (b) What is a will, and what are the legal requirements relating to the capacity of an individual to make a will? 3 marks QUESTION 8. You have been appointed as a training consultant to a financial institution which provides a full range of personal financial planning services to its retail customers. As part of the training program that you have designed for the institution’s financial planners, you have prepared a list of the key elements required in the construction of a financial plan. List and explain each of the elements required in the construction of a financial plan. 15 marks TOTAL 70 MARKS 70831 CV ...
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MU - S1 1998 - Personal Financial Planning - MONASH...

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