Explore BrainMass

Explore BrainMass

    Country risk measures and economic indicators

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    1. What is the relation between expected returns and country-risk measures?

    2. What is the impact of country risk on international bank lending?

    3. Which economic indicators identify debt servicing difficulties?

    © BrainMass Inc. brainmass.com June 3, 2020, 7:07 pm ad1c9bdddf
    https://brainmass.com/business/international-business-management/country-risk-measures-economic-indicators-86977

    Solution Preview

    1. What is the relation between expected returns and country-risk measures?

    Country-risk measures comes from the combination of economic, financial and political risk measures. When the country-risk measures are high, the investors will require higher expected returns in order to hold such high risk. On the other hand, countries with stable economic, social, political, and financial systems provide a safer climate for investment, and therefore lower expected returns, than less stable nations.

    2. ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer the request of the assignment of more than 200 words of text.

    $2.19

    ADVERTISEMENT