INVESTMENT ANALYSIS TUTORIAL | Topic 1

Topic 1: The investment environment 19th January 2018

1. Define the term ‘investment’ and briefly discuss why investment is important to you. (

2. Differentiate between real asset and financial asset with appropriate example.

3. Briefly describe the THREE (3) categories of financial assets.

4. Briefly explain the TWO (2) types of investment management strategies.

5. Discuss how the major players in the financial markets influence each other with its

financial intermediaries.
 INVESTMENT ANALYSIS TUTORIAL | Topic 1

Define the term ‘investment’ and briefly discuss why (10 marks) - 1m definition
investment is important to you. 9 marks
 creating wealth for your
future
 gain financial freedom in
future
 You benefit from higher
potential returns than you
get from a savings account.
 You build up capital for
your personal savings
targets.
 You protect your assets
against the possibility of
negative interest rates.

Differentiate between real asset and financial asset with (5 marks)

appropriate example.
Briefly describe the THREE (3) categories of financial (12 marks)
assets.
Briefly explain the TWO (2) types of investment (6 marks)
management strategies.
Discuss how the major players in the financial markets (10 marks)
influence each other with its financial intermediaries.