Jun 7, 2022 First Period

Consumer

mathematics
( page 65-72 )
 Meet the team

aleeya Irdina Ayesha Sara

 >
>

GoogL E
What factors should be considered before making an investment ?

All Video Picture Maps -Goodluck for the result-

 factors

potential the level of liquidity

invesment risk return aspect
The uncertainty that losses may be Profit enjoyed by the investors Relating to how soon the

incurred from the investment from investment. investment or saving could be

made. cashed out.

 comparison of various types of

savings & investments

type of
risk level return level liquidity level
investment

saving risk free low high

fixed deposit risk free low high

company shares high high moderate

real estate moderate high low

unit trusts
unit trust low

moderate high
What do you understand about cost

averaging strategy?

Technique commonly practised by

investors who invest in shares with a

fixed amount for a certain period

regardless of stock market conditions.

Help investors to buy shares with a lower

TASK

average cost, total number of shares

owned will be higher within the same

investment period.

average cost = investment amount

no. of share unit owned
 advantages cost averaging
strategy
able to take
advantage of unit
price changes lower the risk of loss
Stock price decrease, more units
Help investors to purchase based
of shares can be purchased.
on current situation, avoid loses
Indirectly help investors to have
not influenced by associated with lump sum
more shares in long term.
investment.
Average cost of a share unit emotions
reduces in long term.
Invest consistently on aperiodic
basis the same amount of money
without being influenced by
emotions caused by share price
fluctuation.
example
Mrs Esther Wong invests RM20 000 to buy shares and accumulates the shares in the designated months:

Puan Linda invests a lump sum of RM20000 to buy Pelita Company shares at RM2.00 per unit.

Calculate the average cost per unit and the number of shares owned by Pn Linda and Mrs Esther.

Puan Linda Mrs Esther Wong

Total shares =. RM20 000

RM2.00

= 10 000 share units

Average cost per unit = RM20 000

Total shares = 10626 share units
10 000 share units
Average cost per share = RM20 000

= RM2.00 10626 share units

= RM 1.88
 How do you solve problems involving savings and
investments?

Encik Zaidi,Mr Leong and Mr Navin had retired from their jobs and cash received RM400 000
gratuity from their company They see different investment methods to invest.

ENCIK ZAIDI MR LEONG MR NAVIN

Mr Navin deposited RM200 000 into

Encik Zaidi bought a medium-cost Mr Leong invested RM400 000 in
apartment in Kajang worth RM150 Manis Company shares at RM2.00 a savings account with an interest

000 and receives a rental of RM800 per unit.The company declared a rate of 1% per annum. The balance
per month. The balance is kept in a dividend of 8% for that year. RM200 000 is kept in a fixed
fixed deposit account with an interest deposit account at 4% interest rate
rate of 4% per annum per annum.
QUESTION :

Who is a wise investor?

Mr Leong is a wise investor.

because his return on investment value is

the highest.
 Return of investment
Encik Zaidi

ROI= RM1960
× 100%
RM400 000
Mr Leong
= 4.9%
8 ROI= RM32 000
Dividend= RM400 000 × × 100%
100 RM400 000
=RM 32 000
Mr Navin = 8%

ROI= RM10 000

× 100%
RM400 000
= 2.5%
Mr Guna bought a one-storey house worth
mr guna

RM180 000 and received a rent ofRM950 per

month. The remaining money is deposited in

a fixed deposit account with an interest rate

of 4%per annum.
real estate
fixed deposit
RM 180 000
RM 220 000
RM 950

4%
monthly

mr

Jeffrey Mr Jeffrey deposited RM200 000 in a fixed

deposit account at a bank with an interest

rate of 4.5% per annum. The remaining money

is invested in Permai Company to purchase

Fixed
200 000

shares priced RM3.80 per unit and given a

deposit shares

200 000 RM 3.80 dividend of 7.5% on that year.

4.5% 7.5%
 Question

Explain the investment risk of both.

Mr Guna - real estate( low risk)

saving( low risk)

Mr Jeffrey - shares (high risk)

saving (low risk)

Who is a wise investor?

Mr Jeffrey
 RETURN OF INVESTMENT

MR GUNA MR JEFFREY
are
there
any
questions?
Thank

You!!
~Annyeong~