\u570b\u8ca1.docx - 27 What is the expected effective yield of the portfolio contemplated by Moore Corporation A 2.50 B 2.60 C 2.40 D none of the above

國財.docx - 27 What is the expected effective yield of...

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27. What is the expected effective yield of the portfolio contemplated by Moore Corporation?A) 2.50%.B) 2.60%.C) 2.40%.D) none of the aboveANSWER:C28. What is the standard deviation of the portfolio contemplated by Moore Corporation?29. Lockboxes are post office box numbers assigned to employees for picking up their paychecks.30. Preauthorized payment is an arrangement that allows a corporation to charge a customer’s bankaccount up to some limit.31. Although netting typically increases the need for foreign exchange conversion, it generallyreduces the number of cross border transactions between subsidiaries.A) true.B) false.ANSWER:B32. Leading refers to the payment of supplies earlier than necessary; lagging refers to the paymentof supplies later than allowed.A) true.B) false.ANSWER:A33. Since exchange rate forecasts are not always accurate, a probability distribution of possibleexchange rates may be preferable to a single point estimate.A) true.B) false.ANSWER:A34. When investing in a portfolio of foreign currencies, the currencies represented within theportfolio are ideally highly positively correlated.
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35. A subsidiary will normally have a more difficult time forecasting future outflow payments if itspurchases are international rather thandomestic.A) true.B) false.ANSWER:A36. To _________________, MNCs can use preauthorized payments.37. ___________________ may complicate cash flow optimization.38. MNCs often use ____________ to invest excess cash while retaining liquidity.A) international bond marketsB) international equity marketsC) international money marketsD) the market for acquisitionsANSWER:C39. Centralized cash management is more complicated when the MNC uses multiple currencies.Zanada corporation invests 1500000 south african rand at a nominal interest rate of 10%.at the time the inverestment is $0.203,what is the effective yield of inveresting in rand?(B)8.93%Assume the U.S. one-year interest rate is 15%, while the South African one-year interest rate is 13%. If the South African rand ____ by ____%, a U.S.-based MNC is indifferent between investing in dollars and investing in rand.(c).appreciates; 1.77if interest rate parity does not hold , and the forward is greater than the interest rate differential, than covered interest arbitrage is feasible for investors residing in the country(A) premium home
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