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Question Completion Status: QUESTION 16 Sigma Company, a US MNC is contemplating marking a foreign investment in Thailand. The initial cost of the project is

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Question Completion Status: QUESTION 16 Sigma Company, a US MNC is contemplating marking a foreign investment in Thailand. The initial cost of the project is THB100,000 The annual cash flows over the two-year economic life of the project in THB are estimated as 70,000 and 80,000. The parent firm's cost of capital in dollar is 8%. Long-run inflation is forecasted to be 3% p.a. in the US and 5% p.a. in Thailand. The current spot rate is THB/USD = 25.75. What is the THB equivalent cost of capital according to Fisher effect? Please select the most suitable option a. none of these options b.8% C. 5.94% d 10.0996 QUESTION 17 The following information is provided for each country. Given the weight allocation is the standard deviation (risk) of this global portfolio? Corr Risk Ret Weight 0.56 1 0.36 18.40% 0.6 A American 14.30% 0.56 1 0.32 B British 0.2 13.60% 19.90% 25.709 0.36 0.32 1 0.2 16,20%

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