You are thinking to invest in Russian market. Its recent economic growth rate is around 7%, well above the average growth rate of developed countries estimated at 2% by the IMF. Its annual inflation rate is around 10%, well above the average inflation rate of developed countries estimated at 2% by the IMF. The Russian currency has been depreciating at an annual rate of around 8% against major currencies. While the volatility of the World stock index (standard deviation of dollar returns) is around 15%, the stock market of Russia has a volatility of 25%. The correlation with the World index is only 0.2. (a) Evaluate and describe whether the high inflation rate and weak currency are sufficient reasons to avoid investing in Russia (emerging economy)? (3 marks) (b) Evaluate and describe whether the high volatility of the local market a sufficient reason to avoid investing in Russia? (3 marks) (c) Suggest why you would consider investing in Russia