Risks exist when the actual return does not equal to the expected return.

Select one:

a. FALSE

b. TRUE

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Under the capital conservation approach, if the actual rate of return is lower than the assumed rate, funds could run out of money prematurely.

Select one:

a. FALSE

b. TRUE

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Translation risk occurs when a company buys products or services in a different currency or has receivables in another currency than their operating currency

Select one:

a. FALSE

b. TRUE

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The total lump sum needed for retirement varies from one person to another.

Select one:

a. TRUE

b. FALSE

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The total amount required for retirement fund under capital liquidation approach for constant retirement income of RM60,000payable at the beginning of the year for the next 20 years in retirement with rate of return of 6%, is RM788,195.

Select one:

a. TRUE

b. FALSE

A company with high fixed operating cost will not have higher business risk

Select one:

a. FALSE

b. TRUE

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Conservative investors are willing to accept little to no volatility in their investment portfolios.

Select one:

a. FALSE

b. TRUE

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By taking inflation factor in determining the total lump sum needed for retirement, the financial planner can help maintaining the client's purchasing power during their retirement.

Select one:

a. TRUE

b. FALSe

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Risks associated with the usage of external funds in running the business is known as credit risk.

Select one:

a. FALSE

b. TRUE

Question text

Foreign exchange risk typically affects businesses that export and/or import their products, services and supplies, as well as the investors making international investments.

Select one:

a. TRUE

b. FALSE