1. A U.S. based firm is required to make a large payment, denominated in euros, six months from today related to the purchase of goods from a german firm received this past quarter. in order to hedge this currency exposure the U.S. firm should:

a. Borrow U.S. dollars, convert these borrowed dollars into euros at the spot rate, and then invest these euros in euro-denominated German government bonds.

b. Borrow U.S. dollars, convert these borrowed dollars into euros at the spot rate, and then buy U.S. bonds with these funds

c. Borrow Euros, convert these borrowed euros into dollars at the spot rate, and then invest these dollars in a U.S. based money market account.

d. Borrow Euros, convert these borrowed euros into dollars at the spot rate, and then invest these dollars in a diversified portfolio of stocks of U.S. based multinational firms.

2. All of the following represent a form of foreign direct investment, EXCEPT:

a. joint venture

b. cross-listing

c. wholly owned affiliate

d. greenfield investment

3. Within the framework of CAPM, which of the following statements about beta is NOT valid?

a. It represents the systematic risk inherent in a security

b. It is often lower when calculated relative to segmented domestic markets versus a global market index

c. It can be calculated as the "covariance of future returns between a specific security and the market portfolio" divided by the "variance of returns of the market portfolio"

d. It may be negative

Please answer all of the questions. Will give thumbs up for all answers and correct answers. THANK YOU