Finance Perspective

Question 1

Part A: Essay-style Discussion Questions

Please answer each of the discussion questions below in the context of this unit and from a finance and personal finance perspective.1. Discuss the concept of the risk-return trade-o and how it may apply in different circumstances. (12 marks)2. Outline the risk-reduction benefits of diversification of an investment portfolio. In your answer, briefly discuss how portfolio diversification works in principle to minimise overall investment risk. (12 Marks)3. Identify and briefly discuss three different debt products appropriate for different situations. What is the difference between secured and unsecured debt? (12 Marks)4. What is the purpose and use of personal financial statements and budgets for successful financial planning and wealth management? (12 Marks)5. Discuss the importance of appropriate and adequate insurance in financial planning.

(12 Marks)Part B: Calculation Questions

In answering each of the calculation questions below, please show all formulas and workings and/or explain approaches and steps taken.1. Compare the performance of the two equity funds (Fund A and Fund B), based on the information given below. (20 Marks)

Question 2

Choose any existing company of your choice operating in Singapore. The company can be from any industry. Imagine that you have been appointed as the Human Resource (HR) Manager of your chosen company. Your boss has asked you to prepare a report recommending job analysis and job design, recruitment and selection strategies that can be adopted by the company to fulfil its staffing needs in view of overall PM strategies.