1 A firm that located in a country that experience highly economic growth would most likely have access to level of capital than others, and as a result the cost of capital will be A low, high B high, low C low, low D high, high 2 What method used to estimate the MNE's cost of debt that include currency and exchange rate risks A Weighted Average Cost of Capital (WACC) B Fisher Effect C Capital Asset Pricing Model (CAPM) D Net Present Value (NPV) 3 When investing into a foreign country, an investor would require a risk premium which is A The excess return of the foreign governmental bond yields over domestic bond yields B It is the reflection of political, economic financial risks C Both A B is correct D None of the above is correct 4 The main reason for International portfolio diversification is A Increased returns due to higher levels of risk B Increased exposure to country specific risks C Increased correlation between asset returns in different countries D Reduced overall portfolio risk through exposure to non correlated assets

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1-A firm that located in a country that experience highly economic growth would most likely have access to________ level of capital than others, and as

1-A firm that located in a country that experience highly economic growth would most likely have access to________ level of capital than others, and as a result the cost of capital will be _________.

	A.	low, high
	B.	high, low.
	C.	low, low.
	D.	high, high.

2-What method used to estimate the MNE's cost of debt that include currency and exchange rate risks?

	A.	Weighted Average Cost of Capital (WACC).
	B.	Fisher Effect.
	C.	Capital Asset Pricing Model (CAPM).
	D.	Net Present Value (NPV).

3-When investing into a foreign country, an investor would require a risk premium which is

	A.	The excess return of the foreign governmental bond yields over domestic bond yields.
	B.	It is the reflection of political, economic & financial risks.
	C.	Both A & B is correct.
	D.	None of the above is correct.

4-The main reason for International portfolio diversification is

	A.	Increased returns due to higher levels of risk.
	B.	Increased exposure to country-specific risks.
	C.	Increased correlation between asset returns in different countries.
	D.	Reduced overall portfolio risk through exposure to non-correlated assets.