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X Assignment 6

Discussion in 'CA1' started by Louis Lategan, May 2, 2018.

  1. Louis Lategan

    Louis Lategan Member

    Question X6.4 asks to "compare the investment needs" of two companies. I am unsure how to interpret this question.

    Is there a difference between the investment objectives and the investment needs of a company? What would be a good way to go about structuring the answer to this question?
     
    Louis Lategan, May 2, 2018
    #1
  2. Helen Evans

    Helen Evans Ton up Member Staff Member

    There are a couple of potential ways of structuring a good answer here. Firstly looking at the instruction word it is "Compare", which means look at similarities and differences. So one possible way of structuring a good answer would be to divide it into these two sections. Investment "needs" encompasses the objectives but goes further. So when we think about needs we can think about the investor's objectives, the sort of liabilities it is subject to and its likely risk appetite. So another way of structuring your answer would be to use these areas as subheadings and then include your relevant points (both similarities and differences) under each subheading.
     
    Helen Evans, May 3, 2018
    #2
    Louis Lategan likes this.

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