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
(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
Explore a world of academic support with assignment helper Malaysia! Our dedicated team specializes in crafting top-notch assignments, including TMA and individual assignments for various subjects such as FIN2102: Financial Management Report at INTI International University. As the leading "essay writer in Malaysia," we offer comprehensive assistance tailored to your needs. Worried about ACC116 Introduction To Cost Accounting? Fret not, because we've got you covered there too. At assignment helper Malaysia, we understand the concerns of students, making us your reliable partner throughout your academic journey.
Recent Solved Questions
- Discuss briefly the pathophysiology and clinical manifestations of breast cancer: Obstetric and Gynaecology Assignment, UOM, Malaysia
- CT038-3-2-OODJ: Procurement Order Tracking System (POTS)
- GMDS5223: The goal of this project is to analyze a real e-commerce dataset to identify patterns: Data Mining Assignment, UiTM, Malaysia
- Marketing Management Dissertation, TU, Malaysia RedMart, HappyFresh, and Honestbee are a few names you probably have already heard of if you like having fresh
- Physics Assignment, UTM, Malaysia Encourage the recognition of Physics principles taught in class in the everyday world
- BECE3073: Estimating and Costing Report, CUM, Malaysia Describe the construction industry structure and key players, and be able to identify the roles and responsibilities
- SSCE2193: Engineering Statistics Assignment, UTM, Malaysia LajakLaku is a manufacturer that produces health supplement diet tablets called LajakKuruih. The company produces
- CSE3033/N: Software Engineering Assignment, UOW, Malaysia TinyGrocer Express was founded last year and had some members of staff who have been there from the start
- ABXM1103: MAN, SOCIETY AND CULTURE Assignment, OUM, Malaysia The International Labour Organization (ILO) reports that more than 15 million children or nearly one in every 10 children
- MSM606: Strategic Management Essay, AeU, Malaysia Acquire relevant knowledge on factors related to and that had impacts on how business organizations function