Assume the following: you have $10,000 to invest; the current spot rate of British pounds is $1.800; the 90-­‐day forward rate of the pound is $1.780; the annual interest rate in the U. S. is 4%; the annual interest rate in the U. K. is 6%. (a) Where would you invest your $10,000 to maximize your yield with no foreign exchange risk? (b) Given the spot rate, the forward rate, and the U. S. interest rate, what is the equilibrium U. K. interest rate?

Each month, business today publishes a news piece about an innovative product, service, or business. such soft news is generally written by a freelance business writer and is known as a

Security a has a higher standard deviation of returns than security b. we would expect that: (i) security a would have a risk premium equal to security b. (ii) the likely range of returns for security a in any given year would be higher than the likely range of returns for security b. (iii) the sharpe ratio of a will be higher than the sharpe ratio of b. (a) i only (b) i and ii only (c) ii and iii only (d) i, ii and iii

Which one of the following statements is true? ddt does not prevent disease from passing from agricultural animals to humans. cost was a major factor in the united states government's decision to ban ddt. many african governments concluded that the potential long-term health effects of ddt were not as serious as the immediate problem of insect control. ddt cannot accumulate in the fat of animals. the ddt ban in the united states has made it very difficult to control agricultural insect pests.