Question $1$

$(8$ Marks$)$

Mkhize Ltd would like to assess the country risk of South Africa. Mkhize Ltd has identified various political and financial risk factors, as shown below.

$\backslash$table$[[$Political Risk Factor,Assigned Rating,Assigned Weight$],[$Blockage of fund transfers,$7,65\%],[$Bureaucracy$,3,55\%],[$Financial Risk Factor,Assigned Rating,Assigned Weight$],[$Interest rate,$5,30\%],[$Inflation$,6,20\%],[$Exchange rate,$5,11\%],[$Competition$,4,35\%],[$Growth$,7,30\%]]$

Mkhize Ltd has assigned an overall rating of $85$ percent to political risk factors and of $35$ percent to financial risk factors. The investment policy for Mkhize Ltd mentions that the company can only invest in a country if the country's risk is below $8\mathrm{.}5.$ Should Mkhize Ltd consider South Africa for investment?

$[8]$