Question

Are investors underestimating the risk of immobile assets in, sometimes, highly unstable countries?

Are investors underestimating the risk of immobile assets in, sometimes, highly unstable countries?

Homework Answers

Answer #1

Well,

Immobile assets are assets which cannot be moved like land, properties etc.

Since these are not movable a investor cannot take that away to anywhere. Therefore, if that particular unstable country come in a crisis the investor is probable to lose his asset.

There are lots of unstable countries in the world where future of that country cannot be predicted because they may be still facing wars, goons attacks and highly volatile market and currencies. So investments by a citizen or a foriegn investor in an immobile assets will be very risky.

For example) in Syria wars are happening this century also so no one can predict the future and investments in such market conditions is highly risky.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Assuming investors are risk-averse on average, what would you expect the order to be if you...
Assuming investors are risk-averse on average, what would you expect the order to be if you ordered the assets by expected return (from lowest to highest) instead? (note: expected return is just the expected value of the return). 1. Apple Stock 2. US government bond with maturity of 10-years 3. Apple preferred stock 4. Corporate bond with maturity of 10-years issued by Apple 5. 3-month T-bill
Question: A significant increase in inflation in a country causes, a. investors to sell domestic assets...
Question: A significant increase in inflation in a country causes, a. investors to sell domestic assets b. foreign exchange market pressure to depreciate the domestic currency c. currency traders to sell the domestic currency d. all of the above Question 2 Capital flight from a domestic country tends to cause, a. selling of the domestic country's currency b. weakening of the domestic country's currency c. greater difficulty of domestic borrowers in repaying debt denominated in a foreign currency d. all...
Unfortunately it’s a familiar chain of events in the mining industry: junior mining partner makes a...
Unfortunately it’s a familiar chain of events in the mining industry: junior mining partner makes a discovery in a faraway land. Junior mining company sinkssignificant amounts of capital into the ground to establish a world-class resource. The discovery attracts the interest of powerful local business concerns and/or governments. The deposit is seized under suspicious circumstances and the junior mining company’s shareholders are annihilated. This story has played out all over the world from Venezuela to Mongolia to the Democratic Republic...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
Discuss ethical issues that can be identified in this case and the mode of managing ethics...
Discuss ethical issues that can be identified in this case and the mode of managing ethics Enron finds itself in this case. How would you describe the ethical culture and levels of trust at Enron? Provide reasons for your assessment. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among...
Discuss how the respective organizations’ relations with stakeholders could have potentially been affected by the events...
Discuss how the respective organizations’ relations with stakeholders could have potentially been affected by the events that took place at Enron and how the situation could have been dealt with differently to prevent further damage? THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies,...
Please read the article and answear about questions. Determining the Value of the Business After you...
Please read the article and answear about questions. Determining the Value of the Business After you have completed a thorough and exacting investigation, you need to analyze all the infor- mation you have gathered. This is the time to consult with your business, financial, and legal advis- ers to arrive at an estimate of the value of the business. Outside advisers are impartial and are more likely to see the bad things about the business than are you. You should...
1. The failure of the new supply chain system affected Nike adversely. What were the reasons...
1. The failure of the new supply chain system affected Nike adversely. What were the reasons for the failure and how did the breakdown harm Nike? 2. What are the important elements to be kept in mind while implementing a new system in an organization? What is the importance of a good working relationship between partners and the sharing of responsibility in implementing critical projects? What mistakes did Nike and i2 make? 3. comment on the lessons learned and the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT