Question
Ayrshire Ltd. Is examining doing business in Sumatra. There are both political and economic risk factors that the analysis team has identified. The team has
Ayrshire Ltd. Is examining doing business in Sumatra. There are both political and economic risk factors that the analysis team has identified. The team has determined that the political factors are more vital than the economic factors, and determined that political factors (as a whole) should be weighted by 65% and economic factors (as a whole) weighted by 35%.
Political Risk Factors | Weights | Ranking |
Government Takeover | 20% | 3 |
Capital Controls | 20% | 4 |
Consumer Sentiment | 60% | 5 |
100% | ||
Financial Risk Factors | ||
Interest Rates | 50% | 5 |
Inflation Level | 30% | 4 |
Exchange Rates | 20% | 4 |
100% |
Each of the political and financial risk factors are listed, with their weights and rankings as determined by the analysts. What is the country risk score that results from the given analyst assumptions?
Options:
| 3.8 |
| 4.4 |
| 4.1 |
| 2.6 |
| 4.3 |
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