FIN4802
Assignment 1 2025
Detailed Solutions, References & Explanations
Unique Number: 244150
Due date: 21 May 2025
QUESTION 1
Risk Factor Rating Assigned Weighted Value of
Assigned Weight (%) Factor
Political Risk Factors
Blockage of fund transfer 6 55% 6 × 0.55 = 3.3
Bureaucracy 4 45% 4 × 0.45 = 1.8
Total Political Risk Rating 5.1
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Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, +27 67 171 1739
QUESTION 1
Risk Factor Rating Assigned Weighted Value of
Assigned Weight (%) Factor
Political Risk Factors
Blockage of fund transfer 6 55% 6 × 0.55 = 3.3
Bureaucracy 4 45% 4 × 0.45 = 1.8
Total Political Risk Rating 5.1
Financial Risk Factors
Interest rate 4 20% 4 × 0.20 = 0.8
Inflation 5 15% 5 × 0.15 = 0.75
Exchange rate 4 10% 4 × 0.10 = 0.4
Competition 3 30% 3 × 0.30 = 0.9
Growth 7 25% 7 × 0.25 = 1.75
Total Financial Risk Rating 4.6
Overall Country Risk Rating
Political Risk Rating (5.1) 75% 5.1 × 0.75 = 3.825
Financial Risk Rating (4.6) 25% 4.6 × 0.25 = 1.15
Overall Country Risk Rating 4.975
Since 4.975 < 8.5, Mkhize Ltd should consider investing in South Africa because
the overall country risk is below the acceptable limit set by the company's
investment policy.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
Assignment 1 2025
Detailed Solutions, References & Explanations
Unique Number: 244150
Due date: 21 May 2025
QUESTION 1
Risk Factor Rating Assigned Weighted Value of
Assigned Weight (%) Factor
Political Risk Factors
Blockage of fund transfer 6 55% 6 × 0.55 = 3.3
Bureaucracy 4 45% 4 × 0.45 = 1.8
Total Political Risk Rating 5.1
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, +27 67 171 1739
QUESTION 1
Risk Factor Rating Assigned Weighted Value of
Assigned Weight (%) Factor
Political Risk Factors
Blockage of fund transfer 6 55% 6 × 0.55 = 3.3
Bureaucracy 4 45% 4 × 0.45 = 1.8
Total Political Risk Rating 5.1
Financial Risk Factors
Interest rate 4 20% 4 × 0.20 = 0.8
Inflation 5 15% 5 × 0.15 = 0.75
Exchange rate 4 10% 4 × 0.10 = 0.4
Competition 3 30% 3 × 0.30 = 0.9
Growth 7 25% 7 × 0.25 = 1.75
Total Financial Risk Rating 4.6
Overall Country Risk Rating
Political Risk Rating (5.1) 75% 5.1 × 0.75 = 3.825
Financial Risk Rating (4.6) 25% 4.6 × 0.25 = 1.15
Overall Country Risk Rating 4.975
Since 4.975 < 8.5, Mkhize Ltd should consider investing in South Africa because
the overall country risk is below the acceptable limit set by the company's
investment policy.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
