Question one A study and understanding of the investment environment is important to an investor. The more experience he

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Question one
A study and understanding of the investment environment isimportant to an investor. The more experience he has gained indealing in and with the various components of the environment, thebetter prepared he would be to face the various situations he wouldcome across during the investment time horizon.
Required
a) Discuss the characteristics of a favorable investmentenvironment (15 marks)
b) Discuss some of the measures laid done by the Kenyangovernment to attract investors (5 marks)
Question Two
A financial market can be seen as a set of arrangements thatallows trading among its participants.
a) Using relevant examples, discuss the various classificationsof financial markets in Kenya (14 marks)
b) Discuss the three forms of efficient market hypothesis (6marks)