FIN4802
ASSIGNMENT 1 2025
UNIQUE NO: 244150
DUE DATE: 21 MAY 2025
, FIN4802 Assignment 1 (2025),
Question 1 (8 Marks)
Should Mkhize Ltd consider South Africa for investment?
To decide whether Mkhize Ltd should invest in South Africa, we need to calculate the
overall country risk rating based on the political and financial risk factors provided.
Step 1: Calculate the Weighted Political Risk Score
We are told that Mkhize Ltd has given political risk factors an overall weight of 85%.
Let’s calculate the individual scores for each political risk factor:
1. Blockage of fund transfers
Rating: 7
Weight: 65%
= 7 × 65% = 4.55
2. Bureaucracy
Rating: 3
Weight: 55%
= 3 × 55% = 1.65
Now combine these two using their proportionate contributions to the political risk
(assume the weights are applied separately as part of the 85% total).
Total political risk score = (4.55 + 1.65) = 6.2
Then apply the 85% overall weight:
= 6.2 × 85% = 5.27
Step 2: Calculate the Weighted Financial Risk Score
ASSIGNMENT 1 2025
UNIQUE NO: 244150
DUE DATE: 21 MAY 2025
, FIN4802 Assignment 1 (2025),
Question 1 (8 Marks)
Should Mkhize Ltd consider South Africa for investment?
To decide whether Mkhize Ltd should invest in South Africa, we need to calculate the
overall country risk rating based on the political and financial risk factors provided.
Step 1: Calculate the Weighted Political Risk Score
We are told that Mkhize Ltd has given political risk factors an overall weight of 85%.
Let’s calculate the individual scores for each political risk factor:
1. Blockage of fund transfers
Rating: 7
Weight: 65%
= 7 × 65% = 4.55
2. Bureaucracy
Rating: 3
Weight: 55%
= 3 × 55% = 1.65
Now combine these two using their proportionate contributions to the political risk
(assume the weights are applied separately as part of the 85% total).
Total political risk score = (4.55 + 1.65) = 6.2
Then apply the 85% overall weight:
= 6.2 × 85% = 5.27
Step 2: Calculate the Weighted Financial Risk Score
