(a) A Parent Company in United States establishes three wholly owned affiliates in Belgium, Canada and Norway. Its total investment in each of the respective affiliates at the beginning of the year, together with year-end returns in parent currency ($), appear here: Subsidiary Total Assets Returns Belgium $2,000,000 $500,000 Canada $6,000,000 $1,800,000 Norway $3,000,000 $1,200,000 The Parent Company requires a return on its domestic investments of 10 percent and is evaluating the annual performance of its three foreign affiliates. To establish an appropriate performance benchmark, the Parent Company subscribes to a country risk evaluation service that compiles an unweighted risk index for various countries around the world. The risk scores for each of the affiliate countries are: Country Risk Score (out of 50) Belgium 25.0 Canada 17.5 Norway 12.5 Page 2 of 4 CONFIDENTIAL 202104/ACC218/A Other things being equal, the higher the score, the lower the country's risk. Required: Prepare an analysis for Parent Company's management indicating which affiliate performed best. (10 marks)