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A. Explain the following terms as they apply to international financial management: I. Currency Swaps II. Eurocurrencies III. Spot rate IV. Translation risk [8 Marks]

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A. Explain the following terms as they apply to international financial management: I. Currency Swaps II. Eurocurrencies III. Spot rate IV. Translation risk [8 Marks] B. Mubita has the following projections on the performance of XYZ stock next year: Page 1 of 4 Compute the expected return, standard deviation and coefficient of variation of the projected performance of XYZ stock. [12 Marks] C. The expected cash flow at the end of the year on an investment is K150,000. The alternative riskless investment in Treasury-bills is expected to pay 5%. If you require a risk premium of 10%, how much will you be willing to pay for this investment? [5 Marks]

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