Personal Finance (FNCE2001)-Assessment 2 (Case Study)
Personal Finance (FNCE2001)-Assessment 2 (Case Study)
Answer Sheet
This assessment is to check on learning of important topics covered in lectures 3-7 (Taxation Planning, Behaviour Finance, Investment Choices, Direct Investment, and Indirect Investment). This assessment
is an individual assignment.
represents 35% of the overall marks of this unit.
should be submitted via Turnitin to the link provided on Blackboard.
due date and time: 25th September 2024, 17:00AWST
Feel free to make reasonable assumptions for any missing information that you consider essential for your analysis or calculations. Please clearly indicate your assumptions wherever applicable.
All 5 case studies should be attempted. In answering the questions, students must show detailed assumptions and calculations. Please attach all the website information used (screenshots are allowed) as an appendix.
Please complete the following declaration before you proceed with the Assignment by ticking the boxes for each of the statements:
Declaration Please tick here
I understand and agree that this assessment should be completed without assistance from any other person. I agree not to share my answers or to discuss any of the questions with anyone during or after the assessment. I agree not to record, copy, communicate or distribute the intellectual property contained in this assessment. I agree that if I violate any of these conditions, I am committing Academic Misconduct and I accept that appropriate actions will be taken as per Curtin University policy.
Case study 1 (Total= 13 marks)
Which Scenario are you working on?
Source a high-interest-rate savings account and calculate the interest earned on the savings account. Include a screenshot of your product in the appendix. (1 mark)Analysis of the allocated question based on the scenario you are working on. (2 marks)
Determine the tax liability and Medicare levy for the 2023/2024 financial year for your clients. (6 marks) Note: please insert or delete rows as necessary.
Item Client A Client B
Suggest and explain TWO tax-effective strategies that the couple (based on your allocated case) could use to reduce their taxable income. (2 marks)
Calculate the capital gain or loss if your client decides to sell their investment (based on your allocated case) and explain the implications on the tax return. (2 marks)
Case study 2 (Total= 5 marks)In our tutorials on August 19th, Professor Durand conducted an experiment considering myopic loss aversion.What is myopic loss aversion? Does myopic loss aversion provide any lessons for someone engaged in long-term saving (e.g., retirement)? Note: A copy of the relevant article is available on the Blackboard.
Case study 3 (Total= 5 marks)
Reflecting on what you learnt from assessment 1 if you could invest in any of the general classes of assets (i.e. cash, fixed interests, property and shares) which would you invest in, how often would you invest, and why? What are the main characteristics and differences between the different types of investments that you would need to consider? *Note that if you did not have a positive cash flow assume $50 a week.
Case study 4 (Total= 8 marks)
Provide your analysis and advice to Mark on which to invest between XYZ Utilities Ltd. (XYZ) and ABC Pharmaceuticals Ltd. (ABC).
Case study 5 (Total= 4 marks)
Evaluate two different types of investment funds that invest in multiple sectors (well-diversified): one managed fund and one exchange-traded fund (ETF). Compare their management styles, fee structures, historical performance, and potential risks. Based on this analysis, recommend the fund you believe would best suit a conservative investor's profile and explain why.
END OF THE PAPER
