If Subsidiary A buys from Subsidiary B within a multinational corporation monthly, the corporation can funnel money to A if it is in need of funds by

Select one:

a. allowing A to lead its payments sooner than each month to Subsidiary Bb. allowing Subsidiary B to lag its monthly payments to Subsidiary Ac. allowing Subsidiary A to lag its monthly payments to Subsidiary Bd. allowing B to raise its transfer price to A

Which of the following would be the total dollar return on a foreign security NOT include?

Select one:

a. interest incomeb. taxesc. capital gainsd. dividend income

Tax arbitrage

Select one:

a. occurs due to the incidence of capital flightb. arises when subsidiary profits vary due to local regulations for the environmentc. occurs when firms move funds to higher tax codesd. arises because countries have different tax codes

Of the following hedging methods which one involves risk sharing between exporter and importer?

Select one:

a. Currency Collarsb. Currency Optionsc. Exposure Nettingd. Cross Hedging

In the recent past, the most preferred form of securities to fund firms in the U.S. has been ___

Select one:

a. Stock derivativesb. Common stockc. Preferred stockd. Debt

The efficient frontier is the set of portfolios that has the _________ standard deviation for its level of expected return.

Select one:

a. greatest possibleb. smallest possiblec. most feasibled. least correlated