1. If Congress were to repeal the tax advantaged rate for cash dividends on common stock, what type of risk would that be an example of?

2. Why would one pay more for a gold miner located in Canada as opposed to one located in South Africa assuming that they are economically identical?

3. You decide to purchase a 10,000 pound, 1 year UK Treasury bond yielding 5% when the exchange rate was 1.5 American dollars for each UK pound. One year later the exchange rate was 1.4 American dollars for each pound.

a. How many dollars will you need to buy the note?

b. How many pounds will you have in one year?

c.If you converted the pounds back to dollars immediately upon the bonds maturity how many dollars did you end up with?

d.What type of risk is this an example of?