A. Explain the following terms as they apply to international financial management: I. Currency Swaps II. Eurocurrencies III. Spot rate IV. Translation risk [8 Marks] B. Mubita has the following projections on the performance of XYZ stock next year: State of the Economy Probability Return (%) Boom 0.3 44 Normal growth 0.4 14 Recession 0.3 16 Page 2 of 4 Compute the expected return, standard deviation and coefficient of variation of the projected performance of XYZ stock. [12 Marks] C. The expected cash flow at the end of the year on an investment is K150,000. The alternative riskless investment in Treasury-bills is expected to pay 5%. If you require a risk premium of 10%, how much will you be willing to pay for this investment? [5 Marks] [Total: 25 Marks]
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Graduate Outcomes Presentation Slides - English (v3).pptx
A- Explain the following terms as they apply to international financia.docx
1. A. Explain the following terms as they apply to international financial management: I. Currency
Swaps II. Eurocurrencies III. Spot rate IV. Translation risk [8 Marks] B. Mubita has the
following projections on the performance of XYZ stock next year: State of the Economy
Probability Return (%) Boom 0.3 44 Normal growth 0.4 14 Recession 0.3 16 Page 2 of 4
Compute the expected return, standard deviation and coefficient of variation of the projected
performance of XYZ stock. [12 Marks] C. The expected cash flow at the end of the year on an
investment is K150,000. The alternative riskless investment in Treasury-bills is expected to pay
5%. If you require a risk premium of 10%, how much will you be willing to pay for this
investment? [5 Marks] [Total: 25 Marks]
![A. Explain the following terms as they apply to international financial management: I. Currency
Swaps II. Eurocurrencies III. Spot rate IV. Translation risk [8 Marks] B. Mubita has the
following projections on the performance of XYZ stock next year: State of the Economy
Probability Return (%) Boom 0.3 44 Normal growth 0.4 14 Recession 0.3 16 Page 2 of 4
Compute the expected return, standard deviation and coefficient of variation of the projected
performance of XYZ stock. [12 Marks] C. The expected cash flow at the end of the year on an
investment is K150,000. The alternative riskless investment in Treasury-bills is expected to pay
5%. If you require a risk premium of 10%, how much will you be willing to pay for this
investment? [5 Marks] [Total: 25 Marks]](https://image.slidesharecdn.com/a-explainthefollowingtermsastheyapplytointernationalfinancia-230223185411-83939f32/85/A-Explain-the-following-terms-as-they-apply-to-international-financia-docx-1-320.jpg)
