a. You are managing a global fund denominated in British Pound. Your fund will be selling US stocks worth USD 10 million in 4 months. The following information is available for hedging currency risk. UK borrowing rate UK deposit rate US borrowing rate" US deposit rate Current spot 4-month forwarde 6% 4% 7% 5% 1.3357 1.33802 1.3416 - 1.34532 i. Calculate how much (in British Pound) your fund will receive from selling the US stocks using foreign market hedge. (2 marks) ii. Calculate how much in British Pound) your fund will receive from selling the US stocks using money market hedge. (9 marks) b. Stock A has an expected return of 10% and a standard deviation of 5%. John is indifferent between stock A and a risk-free investment that offers 4% return. On the other hand, Peter is indifferent between stock A and a risk-free investment that offers 7% return. Other things being equal, who is more likely to invest in a higher risk portfolio? Why? (9 marks)