Subject Name: Corporate Finance

Subject Name: Corporate Finance

Assessment Description

Individual Test (15%) (90 minutes)

The individual test will take place after the group case study. The test will consist of: o Short answer questions and o Multiple choice questions

Questions will be based on Topics 1 to 4.

Some questions in both Activity 1 will be based on the information reported below. Make sure you are familiar with this information.

To invest well, you need to find investments that fit your financial goals, investing time frame and risk tolerance.

Defensive investments

Defensive investments are lower risk investments. They aim to provide income and protect the capital invested. Defensive investments include cash and fixed interest investments. They're typically used to: Meet short-term financial goals (up to two years). Diversify a portfolio

Growth investments

Growth investments are higher risk and offer a higher potential return compared to defensive investments. They aim to give capital growth and some provide income (for example, dividends for shares or rent for property). But, the price of growth investments can be volatile over short periods of time.

Growth investments are typically used to:

Earn a higher rate of return (but this comes with higher risk).

Meet longer term financial goals, five years or more.

Growth investments include shares, property and alternative investments.