BWFF3033: As an individual investor in Malaysia, you believe the main index of the Malaysia stock market, FBM KLCI would decline further in the year 2022: Financial Market and Institutions Assignment, UUM, Malaysia
| University | Universiti Utara Malaysia (UUM) |
| Subject | BWFF3033: Financial Market and Institutions |
Questions
1) As an individual investor in Malaysia, you believe the main index of the Malaysia stock market, FBM KLCI would decline further in the year 2022. The FTSE Bursa Malaysia KLCI comprises the largest 30 companies listed on the Main Board by full market capitalization that meet the eligibility requirements of the FTSE Bursa Malaysia Ground Rules. Given your strong belief in that market trend, you aim to make a significant capital gain from the financial exchanges in Malaysia. Based on this module content outline, suggest TWO (2) suitable financial instruments (ie any specific equity-based, debt-based or neither debt-based nor equity-based financial instruments) and explain in detail how you would apply that financial instruments in order to meet your objective effectively and efficiently.
2) Recently, your friend who owns a multinational corporation in Malaysia has just bought fabrics from a U.S. company, with a payment of $1 million due in 6 months. Assuming today is 20 April 2022, given the current spot rate (MYR/USD) is MYR/USD 4.3103-221, the six-month forward rate is MYR/USD 4.4252-70. Due to the impact of the Malaysian stock market performance on the value of MYR, you expect the spot rate to reach MYR/USD 4.4340-57 in the coming six months, calculate the implicit gains or losses on this forward position in MYR.
3) Your friend has no investment experience. After completing his studies in investment-related courses, he would like to invest in the financial exchanges in Malaysia. Due to having no real investment experience, he prefers certainty. Hence, he would not mind receiving low levels of return at the beginning of the holding period of that instrument. With his investment knowledge plus determination, he is confident that within a holding period of no longer than ONE (1) year, the stock market in Malaysia would enter into a bull run. He would then be ready and able to bear the higher risk and achieve his investment goal of making higher capital gains. Based on this module content outline and given this information, recommend to him a financial instrument for investment that is most suitable to his needs and explain its suitability.
Stuck in Completing this Assignment and feeling stressed ? Take our Private Writing Services.
Get Help By Expert
Are you seeking the best homework help in Malaysia? Then you are in the right place. Malaysia Assignment help is one of the top quality assignment help providers in the world. all assignments solution are written by knowledgeable and well-qualified experts who have complete knowledge of finance assignments.
Recent Solved Questions
- Explain1 of the risk exposure that you are able to hedge by using a listed derivative with appropriate justification: Finance Assignment, TU, Malaysia
- Computational thinking refers to the thought processes involved in defining a problem and its solution: Computational Thinking and Problem Solving Assignment, MU, Malaysia
- Even though the Federal Constitution of Malaysia protects against discrimination, it occurs in different forms at the workplace: Law Assignment, UM, Malaysia
- CBS1233: Select a Malaysian company that is operating domestically and that wishes to move internationally: Introduction to marketing Assignment, SC, Malaysia
- In recent times, the Internet of Things is considered a future internet solution in cloud computing technology: Cyber Security Thesis, MMU, Malaysia
- Pengenalan ISU Semasa Kesan covid 19 terpap hobungan social social kalangan masyarakat iyitu hubun antara masyarakat semakin pudar: Moral Education Assignment, OUM, Malaysia
- Analysis and discussion on the financial performance and Basically your financial performance analysis comprise of horizontal: Faculty of Business and Law Assignment, TU, Malaysia
- TSE307/05: Describes Logical Reasoning which includes Critical Thinking in a formal and daily task performance: computational Assignment, OUM, Malaysia
- Identify suitable mathematical models based on different types of problems that exist related to appropriate approaches: Operational Research Research Paper, TUE, Malaysia
- PGBM146: This business report based is based on a case study on Tesla The content of the report will demonstrate learning undertaken: Value Creation in Organizations Managing Operations and Marketing Case Study, UOS, Malaysia
