FIN4802 Assignment 1 (COMPLETE ANSWERS) 2025 (244150) - DUE 21 May 2025 ;100% trusted ,comprehensive and complete reliable solution with clear explanation

, FIN4802 Assignment 1 (COMPLETE ANSWERS) 2025
(244150) - DUE 21 May 2025 ;100% trusted ,comprehensive
and complete reliable solution with clear explanation


Question 1.To determine whether Mkhize Ltd should consider
investing in South Africa, we need to calculate the overall
country risk rating, based on:
1. Weighted average of the political and financial risk
factor ratings, and
2. Overall weightings assigned to political risk (85%) and
financial risk (35%).


Step 1: Calculate weighted political risk score
𝑊𝑒 𝑢𝑠𝑒 𝑡ℎ𝑒 𝑓𝑜𝑟𝑚𝑢𝑙𝑎:

𝑊𝑒𝑖𝑔ℎ𝑡𝑒𝑑 𝑃𝑜𝑙𝑖𝑡𝑖𝑐𝑎𝑙 𝑅𝑖𝑠𝑘 𝑆𝑐𝑜𝑟𝑒
= ∑(𝑅𝑎𝑡𝑖𝑛𝑔
× 𝑊𝑒𝑖𝑔ℎ𝑡)∑𝑊𝑒𝑖𝑔ℎ𝑡𝑠
\𝑡𝑒𝑥𝑡{𝑊𝑒𝑖𝑔ℎ𝑡𝑒𝑑 𝑃𝑜𝑙𝑖𝑡𝑖𝑐𝑎𝑙 𝑅𝑖𝑠𝑘 𝑆𝑐𝑜𝑟𝑒}
= \𝑓𝑟𝑎𝑐{\𝑠𝑢𝑚 (\𝑡𝑒𝑥𝑡{𝑅𝑎𝑡𝑖𝑛𝑔} \𝑡𝑖𝑚𝑒𝑠
\𝑡𝑒𝑥𝑡{𝑊𝑒𝑖𝑔ℎ𝑡})}{\𝑠𝑢𝑚
\𝑡𝑒𝑥𝑡{𝑊𝑒𝑖𝑔ℎ𝑡𝑠}}𝑊𝑒𝑖𝑔ℎ𝑡𝑒𝑑 𝑃𝑜𝑙𝑖𝑡𝑖𝑐𝑎𝑙 𝑅𝑖𝑠𝑘 𝑆𝑐𝑜𝑟𝑒
= ∑𝑊𝑒𝑖𝑔ℎ𝑡𝑠∑(𝑅𝑎𝑡𝑖𝑛𝑔 × 𝑊𝑒𝑖𝑔ℎ𝑡)
𝑃𝑜𝑙𝑖𝑡𝑖𝑐𝑎𝑙 𝑅𝑖𝑠𝑘 𝐹𝑎𝑐𝑡𝑜𝑟𝑠: