This assessment will allow students to have experience in analysing financial implications for a given business scenario, and communicating the analysis and conclusions in report format as would be expected in a modern organisation.Students are to analyse the given financial data using relevant financial analysis techniques, and create relevant, supported conclusions and make justified recommendations to given issues and problems. Responses are to be formatted into a professional report, as would be expected of someone working in a modern accountant's or financial advisor's office.
A.What are the important factors that should be considered by tertiary sector employees when they are deciding whether to place their superannuation contributions in the Defined Benefit Plan or the Investment Choice Plan? What issues relating to the concept of the time value of money may be important in this decision-making process? Explain.
B.“If the efficient-market hypothesis is true, the pension fund manager might as well select a portfolio with a pin.” Explain why this is not the case.