1. What are the advantages and disadvantages of sales promotions and public relations?
2. Show how the uncovered interest rate parity is used to derive the International Fisher Effect.
3. The protective put strategy is also known as stock price insurance. Why?
4. Discuss the empirical evidence on the success of mergers and acquisitions. Do the bidding firms need to take care in approaching a merger deal? Explain.
5. The average American spends 29 hours a week watching TV. How many hours a week do you think he or she spends on financial planning and investing?