a) Briefly discuss four aspects of the South Korea's environment that favour investing

actively and four aspects that favour indexing.

(8 marks)

b) Recommend whether GAC should invest in South Korea actively or by indexing

and justify your recommendation based on the factors identified in part a).

(8 marks)

2. "Because corporations do not actually raise any funds in secondary markets, they (secondary markets) are less important to the economy than primary markets." Discuss (4 marks)