Question
*You are about to graduate from Ik University (as of February 2023 ). Your family purchased a 1+1 apartment in ile centrum in 2018 for
*You are about to graduate from Ik University (as of February 2023). Your family purchased a 1+1 apartment in ile centrum in 2018 for TL 346,500. Instead of residing there, you chose to share a room with a close friend at the campus dormitories, resulting in your parents bearing the dormitory fees throughout your studies. Consequently, your parents sold the apartment for the same price they bought it for and used the proceeds to purchase USD at the exchange rate of August 13, 2018.
*On May 9, 2019, you used your student savings to buy USD 900.
*On November 27, 2019, a friend of a friend of a friend of your best friend informed you, through your best friend, about learning effective investment strategies in their Ik University ECON3301 class. She/he recommended heavily investing in HEKTAS shares with your available funds and suggesting the same for your parents with the money from the house sale. You decided against this, opting to remain with your USD plan. However, your best friend, emboldened by the recommendation, purchased USD 500 worth of HEKTAS shares on November 27, 2019, subsequently selling them on November 16, 2022.
Tasks:
1. Calculate your earnings and losses as of December 13, 2023, considering various scenarios: o Family retains the apartment, you dont pay for the dormitories, how much is this
apartment worth today? How much rent can your family earn if they give it for rent
to some students? o Parents sell the apartment, you invest in USD. Calculate your USD account's current
value compared to its original purchase. o Parents sell the apartment, you and your parents invest in HEKTAS shares. Simulate
their performance alongside the USD investment for both yourself and your parents. 2. Identify an alternative investment tool besides HEKTAS shares:
o Consider factors like risk tolerance, investment horizon, alignment with macroeconomic trends, and potential return compared to USD and HEKTAS. Explain your rationale for choosing this alternative.
3. Calculate the current value of your total assets:o Include the USD investment, any remaining rent savings, and any potential income from the alternative investment (if chosen).
4. Analyze the reasons behind your earnings/losses: o Discuss the impact of international market factors like exchange rates and global
economic trends on your USD investment. o Analyze the role of the Turkish economy's macroeconomic performance, specifically
linking relevant topics covered in class (e.g., inflation, interest rates, economic
growth) to your financial outcomes. o Compare your performance across scenarios and the alternative investment, drawing
conclusions about optimal choices based on the analysis.
Step by Step Solution
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1 Scenario 1 Family Retains the Apartment Calculate the current value of the apartment and potential ...Get Instant Access to Expert-Tailored Solutions
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