Вы находитесь на странице: 1из 3

Department of Education

Region X – Northern Mindanao

Division of Bukidnon
District of Cabanglasan I
Poblacion, Cabanglasan, Bukidnon



Name:______________________________________________________________________Score: __________________________
Grade & Section: ___________________________________________Date:______________________________________________

A. Match the step in the personal financial planning process in column A with its description in column B by writing the capital letter on
the left side of column A. (Source: Private Financial Design. (2016). Privatefinancialdesign.com. Retrieved 8 May 2016, from

(A) Personal Financial Planning Process Step (B) Description

A. Periodic review of the financial plan to evaluate
_______1. Data Gathering changing market conditions (i.e. economic conditions,
taxes, interest rates, etc.).
B. Quantifying monetary objectives with definite time
_______2. Financial Plan Recommendation
frames. Prioritizing objectives.
C. Using surveys, questionnaires and interviews to gather
_______3. Plan Monitoring
quantitative and qualitative information from the individual.
D. Analysis of the individual’s financial position and cash
_______4. Objective Setting flows. Review of legal papers. Evaluation of objectives vis-
à-vis the client’s resources and economic conditions.
E. Financial products will be proposed. At this point, the
_______5. Data Analysis
individual can comment on the solutions proposed.

B. Match the key area of personal financial planning in column A with its description in column B by writing the capital letter on the left
side of column A (Source: World’s Largest Professional Network | LinkedIn. (2016). Linkedin.com. Retrieved 8 May 2016, from
https:// www.linkedin.com/).

(A) Key Area of Personal Financial Planning (B) Description

A. Planning on wealth accumulation for large purchases
_______1. Financial Position such as house, educational expenses, investments for
retirement, etc.
B. Management of when and how much taxes will be
_______2. Tax Planning
_______3. Retirement Planning C. Analysis of protection needed for unforeseen risks.
D. Understanding of personal resources by checking an
_______4. Adequate Protection
individual’s net worth and cash flow.
E. Understanding the cost of retirement. Analysis of cash
_______5. Investment and Accumulation Goals flows to come up with investment plans that will meet the
costs of retirement in the future.
C. Match the investment asset in column A with its description in column B by writing the capital letter on the left side of column A.

(A) Investment Asset (B) Description

A. An investment that is made up of a pool of funds
_______1. Stocks (Equity) collected from many investors for the purpose of investing
in stocks, bonds, and similar assets.
_______2. Bank Deposits (Fixed Income) B. Land and any improvements on it.
C. Type of security that signifies ownership in a
_______3. Mutual Funds corporation and represents a claim on part of the
corporation's assets and earnings.
D. A contract (policy) in which an individual or entity
_______4. Real Estate receives financial protection or reimbursement against
losses from an insurance company.
E. Money placed into a banking institution for
_______5. Insurance

D. Match the investment asset in column A with its advantage/disadvantage in column B by writing the capital letter on the left side of
column A..

(A) Investment Asset (B) Advantage/Disadvantage

A. Disadvantage: On some of traditional plans, no
_______1. Stocks (Equity) sickness/death until a certain age may mean not getting
any benefits at all.
_______2. Bank Deposits (Fixed Income) B. Advantage: Shorter, if any, holding period vs. bonds.
C. Advantage: Can be a source of recurring rental
_______3. Mutual Funds
D. Disadvantage: Riskiest of all assets (can lose as
_______4. Real Estate
much as 50% of their money in one day.
_______5. Insurance E. Disadvantage: Pay management fees.

1. Assume you are 30 years old and you were able to save PHP50,000. Given what you’ve learned on portfolio diversification, how
will you allocate your savings to bank time deposit and stocks (i.e. 100%-0%, 50%-50%, etc.)? Explain your answer.

2. If let’s say you have PHP1,000,000 today which you can invest for the next 10 years, where will you put it and why?

3. Why would a risk-taker (likes to take risks) type of investor prefer equities over fixed income?

4. Why would a risk-averse (likes to avoid risks) type of investor prefer fixed income over equities?
Part A Part B
1. C 1. D
2. E 2. B
3. A 3. E
4. B 4. C
5. D 5. A

Part C Part D
1. C 1. D
2. E 2. B
3. A 3. E
4. B 4. C
5. D 5. A

1. Any answers will do, as long as they can explain.
2. Note to teacher: They can put it in one investment instrument or it can be a portfolio. Whatever the answer is, there
has to be an explanation.
3. Equities are the riskiest of all assets because of their price volatility. In the Philippine Stocks Exchange, clients can
lose as much as 50% on a stock in one day. Reasons why stock prices are volatile include uncertainties in company’s
earnings, negative or positive market sentiment of investors, etc. And with these great risks comes the potential for
great upside for the risk-taker investor.
4. Fixed income assets are low-risk investments. Even if potential returns are low relative to equities, it gives the
riskaverse investor known income/periodic payments. Note however that this is only true if the security is held until
maturity. Default risk, which is the risk of the counterparty not fulfilling his obligation is also present in fixed income
assets. Therefore, an investor must carefully analyze the issuer and must be convinced about its financial stability
before buying its debt security.