Question 8 (a) You have estimated the following political risk spread model from a sample of countries in December 2018: SS = bo + bPR + b Local + b3ZR + Ei with the following estimates: b=0.01, 6, = 0.75, 6, = 0.55, 6, = 0.25 Egypt is in your sample. Egypt has a political index value PR = 0.05 and a sovereign spread SS=0.20. In addition, Egypt's Local = 0.3 and ZR=0.8. What is the political risk spread (PRSS) of Egypt? (b) What are the possible ways to hedge political risks?