Scribd Logo
Hochladen

Welcome to Scribd!

  • Jom Terokai Dunia Matematik: Chekgu Raihan

    Uploaded by

    NUR RAIHAN BINTI ABDUL RAHIM Moe
    30 views11 pages
    This document discusses the cost averaging strategy for investing in shares. It explains that cost averaging involves buying shares regularly over time, rather than with a lump sum, so that the average cost per share is lower. This helps investors buy more shares and take advantage of fluctuating prices. An example compares two investors, one who uses cost averaging and buys shares monthly, and one who invests a lump sum. Cost averaging reduces risk and is less influenced by emotions.

    Original Description:

    Original Title

    3.1.5

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document discusses the cost averaging strategy for investing in shares. It explains that cost averaging involves buying shares regularly over time, rather than with a lump sum, so that the average cost per share is lower. This helps investors buy more shares and take advantage of fluctuating prices. An example compares two investors, one who uses cost averaging and buys shares monthly, and one who invests a lump sum. Cost averaging reduces risk and is less influenced by emotions.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    30 views11 pages

    Jom Terokai Dunia Matematik: Chekgu Raihan

    Uploaded by

    NUR RAIHAN BINTI ABDUL RAHIM Moe
    This document discusses the cost averaging strategy for investing in shares. It explains that cost averaging involves buying shares regularly over time, rather than with a lump sum, so that the average cost per share is lower. This helps investors buy more shares and take advantage of fluctuating prices. An example compares two investors, one who uses cost averaging and buys shares monthly, and one who invests a lump sum. Cost averaging reduces risk and is less influenced by emotions.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 11

    Jom Terokai

    Dunia Matematik 1

    Chekgu Raihan
    MATHEMATICS
    FORM
    KSSM 3
    CHAPTER 3
    CONSUMER
    Savings and Investments
    MATHEMATICS:
    Credit and Debt
    Chekgu Raihan
    3.1.5
    Calculate the average cost per share for the
    investment of shares using the ringgit cost
    averaging strategy and explain the benefits
    of the strategy

    Chekgu Raihan
    What do you understand about cost
    averaging strategy ?
    Technique
    Buy shares
    pratised by
    with a lower
    investors
    average
    cost

    Cost Help
    averaging investors
    strategy

    Higher
    shares
    owned
    Chekgu Raihan
    Puan Hasniza has RM12 000 and buys shares in a lump sum
    from Sempurna Company at RM2.00 per share unit. Hence,
    Puan Hasniza will only have 6 000 units of shares (6 000
    units of shares × RM2.00 = RM12 000). However the
    situation will be different if Puan Hasniza decides to buy
    shares based on cost averaging strategy.

    Chekgu Raihan
    The table below shows Puan Hasniza’s investment chart in a year based on cost
    averaging strategy for buying shares on a monthly basis.

    Chekgu Raihan
    Tips\
    When you use cost averaging strategy to invest
    shares, the cost of the shares you have bought will
    not be the highest price nor will it be the lowest
    price.

    Chekgu Raihan
    Example 13\
    Below are two investors who plan to invest in shares using different strategies.

    Mrs Esther Wong Puan Linda


    Shares acquired by Mrs Esther Wong in the designated months:

    Chekgu Raihan
    a) Calculate the average cost per unit and the
    number of shares owned by Puan Linda and Mrs
    Esther Wong.\

    Chekgu Raihan
    b) Who is a wise investor ? Justify your answer.

    Chekgu Raihan
    Advantage of the cost averaging strategy
    for investors.
    Able to take
    advantage of
    the unit price
    changes

    Not
    Lower the
    Advantages influenced
    risk of loss
    by emotions

    Chekgu Raihan

    You might also like