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find a answer Section 2 An investor in India has about $5 million to invest. He is faced with the following countries : Canada or
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Section 2 An investor in India has about $5 million to invest. He is faced with the following countries : Canada or South Africa or India. The following information is provided for the analysis. The data provided is in the tables below Table 1: GDP and Inflation information GDP CPI( last year) CPI (current) Canada 2% 450 488 South Africa 4% 670 820 India 6% 540 620 Table 2: information about risk premium for 5 years Return % Canada Return % India Year 1 Year 2 Year 3 Year 4 Year 5 15 3 Return % South Africa 12 5 -4 -6 19 8 6 4 6 6 M001T00 Table 3 : Interest rates offered to the investor Canada 15% South Africa 30% India 25% Returns offered REQUIRED 1. Calculate the inflation rate form information in table 1 for the 3 countries 2. Calculate the risk premium or the standard deviation using information on table 3 for the 3 countries 3. Calculate the required return of each country using all the information, 4. Which country should the investor put his money and explainStep by Step Solution
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