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LOS e, (Part 2): Discuss the risk factors to be assessed in determining a country risk premium for use in estimating the required return for foreign securities.
Q1. The country risk premium considers which of the following types of risk:
A) company-specific risk.
B) exchange rate risk.
C) interest rate risk.
Q2. Which of the following is least likely a risk factor for a country’s risk premium?
A) Business risk.
B) Technology risk.
C) Exchange rate risk.
Q3. Which of the following statements regarding a country risk premium is most accurate?
A) Country risk arises from expected economic and political events.
B) Exchange rate risk is relatively small and can be ignored.
C) Firms in different countries assume significantly different financial risk.
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发表于 2009-3-2 14:21
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