Suppose that the one-year interest rate is 5.0 percent in the united states; the spot exchange

rate is $1.20/€; and the one-year forward exchange rate is $1.16/€. what must the one-year

interest rate be in the euro zone to avoid arbitrage?

a) 5.0%

b) 6.09%

c) 8.62%

d) none of the options

As manager of kids skids, meghan wants to develop her relationship management skills. in order to do this, she learns how to

Cash flow is often a problem for small businesses. how can an entrepreneur increase cash flow? a) locate lower-priced suppliers. b) forego sending in estimated tax payments to the irs c) shorten the terms on a bank loan to pay it off more quickly d) sell more low-margin items.

Consider a treasury bill with a rate of return of 5% and the following risky securities: security a: e(r) = .15; variance = .0400 security b: e(r) = .10; variance = .0225 security c: e(r) = .12; variance = .1000 security d: e(r) = .13; variance = .0625 the investor must develop a complete portfolio by combining the risk-free asset with one of the securities mentioned above. the security the investor should choose as part of her complete portfolio to achieve the best cal would be a. security a b. security b c. security c d. security d