1. As usual, the interest rate in Thailand is higher than the interest rate in the U.S. Why should Vegas Incorporated, a U.S. firm, consider hedging future revenues from Thailand to the parent even if the forward discount of the Thai baht is so large?
2. Calculate the expected return on the market for a stock with an expected return of 9.1 percent and a beta of .74, if the risk-free rate is 3.9 percent.
Download the linked spreadsheet template and use it for your answer. Once complete, upload the template to this question. Don't forget to show your work.