FIN2102 Financial Management Report, IIU, Malaysia Critics of international diversification observe that it does not protect investors against short-term market crashes
| University | INTI International University (IIU) |
| Subject | FIN2102: Financial Management |
Question 2
(a) Clifford Asnees notes that while “critics of international diversification observe that it does not protect investors against short-term market crashes because markets become more correlated during downturns, this observation misses the big picture’. Over longer horizons, underlying economic growth matters more than short-lived panics with respect to returns, and international
diversification does an excellent job of protecting investors. Comment on this statement.
(b) Suzanna plans to save for her 4-year school, which starts 6 years from now.
Suzanna will need to make the first payment 6 years from today. She identifies a savings plan that allows her to earn an interest of 8 percent annually. The current annual expenditure is $7,200 and it is expected to grow by 7 percent annually. How much should Suzanna deposit each year, starting one year from today? Assume that she plans to make 4 payments.
(c) When assessing the potential return on investment, consider all the elements at play, including yield, capital gain, risk, expenses, and taxation. Return comprises both income and capital gain, and fewer expenses. There are also significant tax implications when purchasing an investment property. Risk plays a part when you consider the worst-case scenario and whether or not you can afford it. Broadly speaking, investment decision relies on making most of their return from the project activity, whereas residential investments tend to rely more heavily on making a capital gain. Calculating your figures before you invest is critical to make sure your investment return is worth the risk. Thus, the definition of the required rate of return is the minimum that a project or investment must earn before company management approves the necessary funds or renews funding for an existing project. Give your comment on the above statement.
Are You Searching Answer of this Question? Request Malaysian Writers to Write a plagiarism Free Copy for You.
Get Help By Expert
At AssignmentHelper.My, we provide the best assignment writing help for FIN2102 Financial Management Report at International Islamic University (IIU), Malaysia. Our expert team of writers are experienced in providing quality assistance to students all over the country. We understand that financial management report is a difficult subject to master and that's why our team makes sure to provide quality work which meets all the requirements of your course. We also provide online exam help services so that you can pass your test with flying colors.
Recent Solved Questions
- Entrepreneurship and Innovation Assignment, SU, Malaysia Many organizations faced challenges during the COVID-19 pandemic, and some found ways to overcome them but some failed
- HMEF5113: Statistics for Educational Research Assignment, OUM, Malaysia Describe how you would go about addressing missing values in a dataset when respondents failed to fill up their responses
- TCP3151: Integrative Programming and Technologies Assignment, MMU, Malaysia Java’s main function invokes the first and second native methods and displays the ‘content of the sorted array
- Biology Research Paper, UPM, Malaysia Metabolomics is a comprehensive study of organisms at the level of the metabolite. The emergence of metabolomics
- Fundamentals Of Computer Problem Solving Assignment, UiTM, Malaysia Given a table of prices according to the type of dates. Request the type of dates, grade, and amount
- Managing People and Organisational Behaviour Assignment, UiTM, Malaysia Prior to the Covid-19 pandemic, organizations had already been pressured by fluctuations in oil prices
- Managing Accounting Assignment, UiTM, Malaysia Carefeel, a manufacturing company uses a job-costing system. The company plant has a machining department
- TSE2231: Software Engineering Fundamentals Home Work, MMU, Malaysia MMU has recently set up to provide state-of-the-art research facilities in Computer Science. Apart from students
- Law Equity & Trust Assignment, IIUM, Malaysia Leo Pedersen and Calvin Pedersen are brothers. In 2010, Leo left his job to set up Viking Oak Software Ltd
- Introduction to C Programming Assignment, UON, Malaysia Explain the essential facts, concepts, principles, strategies, and theories relating to Information Technology applications
