Concept Questions $(15$ marks$)$:

You and a group of friends are discussing a recent investment made by one of your friends named Joe.

He made the investment because he believes in the financial advice "always follow the smart money".

While watching a TV interview with a billionaire hedge$-$fund manager, Joe heard the fund manager

recently made a new equity investment.

Specifically, the billionaire's investment was an equity position in a young company within a developing

country. Despite the country being besieged by high inflation and political uncertainty, Joe says,

"because of its high risk a high return will also be appropriate for this stock".

In $1-2$ paragraphs what is your advice or comment to Joe on his recent investment?