Suppose you are the CFO at Makeover Cosmetics, an emerging beauty products MNC with a $100 million capital budget. You have the option to expand into South Korea and/or Singapore. You can either invest the entire budget in either country or split it into S30 million in S. Korea and the rest in Singapore. If the following details are provided, what is your best option? Compute expected return and standard deviation of the portfolio and compare with each country's numbers. (5+10) Expected Return 10% 30% Standard Deviation 20% Correlation Coefficient -0.9 South Korea Singapore 25% The Federal Reserve wishes to depreciate the U.S. dollar against the euro using non-sterilized direct intervention. Explain the steps involved using a flow chart. What potential problems arise after the intervention? How can the problem get mitigated with a sterilized intervention? Use flowcharts to explain your answers. Make sure you don't miss answering any part