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.
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
- Anatomy & Physiology Essay, IIUM, Malaysia Discuss the mechanism of the skeletal and muscular systems as well as elaborate on the importance
- MGT420: Company Implementation of the Principles of Management Assignment, UiTM, Malaysia It is the determining of an organization’s goals and deciding how best to achieve them. The organization obtains
- BCI1103: Demonstrate the principles and concept of computer programming: Computer programming Assignment, SU, Malaysia
- PHT485 Exercise Physiology Assignment: Exercise Recommendations for Managing Hypertension
- MQB7006: Principles of Biostatistics Assignment, UM, Malaysia Describe your statistical analysis plan., data cleaning, and data analysis. Provide cross-tabulation between sociodemographic
- Real Estate and Property Finance Assignment, Malaysia
- Finance in Action Assignment, HWU, Malaysia Collect data on a range of financial instruments (including shares, indices, currencies, and cryptocurrencies
- CIS2017-N: Relational & NoSQL Database Assignment, TU, Malaysia Overview of the Selected Case Study and Associated Business Requirements
- DLL5064: School Effectiveness and Improvement Essay, MSU, Malaysia Identify the leaders in the curriculum at both the building and education. Identify and comprehend the importance
- ACC4054: Critically discuss the importance of standardization of accounting standards for listed companies: Financial Accounting 5, Assignment, APU, Malaysia