in order to diversify risk, some of your clients are considering investing in south Africa economy in sectors outside of the resources sector. critically discuss key macroeconomic considering for your clients to consider before investing in south Africa.
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- Q. Due to global uncertainty and geopolitical impact and anticipating recession in the waster countries, it is assumed that HUL may delivery the return based on the Indian Economic Condition. RBI projected the Indian Economic growth as follows. Projected Indian Economic Condition Probability of occurrence Possible Return from HUL (in %) Extremely Good 10% 22% Good 20% 18% Average 40% 15% Poor 20% 8% Severely Poor 10% 4% In this situation, if we invest in HUL, how much return can be expected? Also, suggest the possible risk involved in this investment.**Practice** I have been trying to practcie this question but I always seem to get it wrong What is the expected final wealth of each agent? Pay attention to the names in each option!A. Anna’s expected final wealth is 1440 and Bob’s expected final wealth is 980B. Anna’s expected final wealth is 1020 and Bob’s expected final wealth is 1380C. Anna’s expected final wealth is 1460 and Bob’s expected final wealth is 1105D. Anna’s expected final wealth is 1140 and Bob’s expected final wealth is 1200E. None of the options aboveYour uncle offers you a "sure-fire" investment opportunity. All you have to do is invest $2000 and you will get a guaranteed return of $2063 in 6 months' time. Your alternative is to place your money in a bank account paying 6% p.a. Assuming both alternatives are truly risk-free, would you undertake this investment? Why/why not? Select one: a. Yes, because the investment will generate a return of 6.3%, whereas the bank is only offering 3% for the period of the investment. b. No, because the investment will only generate a return of 3.15%, whereas the bank is offering 6%. c. Yes, because the investment will generate a return of 6.3%, whereas the bank is only offering 6%. d. You would be indifferent between accepting and not accepting the investment opportunity, because the return from the investment is the same as the return from putting money in the bank.
- Discuss the profits are reward for risks and uncertainty-bearing.how do financial analyst might Financial statement Liquidity,Working capital, Diversifica!on and Time value of mone when communica!ng informa!on to management or clients, or when relaying informa!on to inform important decisionsDefine the term Net-Present-Worth Criterion?
- A company that produces video equipment, including videocameras and televisions, is attempting to forecast what newproducts and product innovations might be technologicallyfeasible and that customers might demand 10 years into thefuture. Speculate on what type of qualitative methods itmight use to develop this type of forecast.Tasha is planning to invest in a farming project in 2022, but has a reservation given the different forecast (declined (D),the average (A) and takeoff (T)of the economy. She uses the following to guide her decision making. (i) there is 25% chance she will invest if there is a forecast of declined (ii) there is a 75% chance she will invest if there is a forecast of average growth and (iii) there is a 55% chance of investing if there is a forecast that economy will takeoff. Tashanna believes that for 2022 there is a 20% chance of decline and a 40% chance of average growth and a 40% chance the economy will take off. Based on these probabilities what is the chance that Tattiana will invest in the farming project if the stated forecast hold?The surface area of a certain plant that requires painting is 8 ,000 sq ft. Two kinds of paint are availablewhose brand are J and K .Paint J costs P1.40 per sq.ft but needs renewal at the end of every 4 years while paint K costsP1.8 per square ft. If money is worth 16% effective , how often should paint K be renewed so that it will be aseconomical as paint J? A) 5.6.years C) 3.9 yearsB) 4.2 years D) 5.3 years
- Adam is considering what skills to study in online school. Her utility function is based on the income she earns, and is defined by U(I) = I0.8. If she learns the skill of SPSS, she will earn $145,000 per year with probability 1. If she learns the skill of Tableau, she will earn $300,000 per year with probability 0.6 (assuming that she gets the certificate) and $30,000 with probability 0.4 (if she learns without earning a certificate and she has to find a waiter job). a. Is she risk averse, risk neutral, or risk loving? Explain.b. Write out the equation for her expected utility for each skill. c.Which skill will she learn? Show your work. d.Suppose someone offers her insurance for the possibility that she does not get a Tableau certificate. This insurance will provide her an amount of income in addition to the waiter job wages that makes her indifferent between learning SPSS and Tableau. What is this amount, and what is the cost of the insurance? (note: many possible answers)“Risk-averse investor will never assume risk” - would you agree? Justify your stand. Also, explain the components of return of investment.Given that Costa Rica has 12.1 mean years of school, the minimum years of school is 0, and the maximum years of school is 13.3. Also, Costa Rica has 15.2 expected years of schooling, the minimum years of schooling is 0, and the maximum years of expected schooling is 18. The minimum education index is 0 and the maximum education index is 0.971. What is the education index for Costa Rica for NDHI? Please show your work.