1 Capital market segmentation may occur due to:

a) foreign exchange risks

b) regulatory barriers

c) lack of transparency

d) asymmetric information between domestic and foreign-based investors

e) all answers in this question are correct.

2 DFI by its very nature is:

a) For a short term period.

b) For a long-term period.

c) Neither short- nor long-term.

d) An investment in only a medium-term period

3 An international investment opportunity should be rejected if:

a) project's NPV > parent viewpoint's NPV

b) NPV of the project > 0, but the NPV of the parental viewpoint is < 0

c) IRR of the project < 20%