1. Discuss the rationale and main criticisms of short-selling restrictions.
2. Project L costs $35,000, its expected cash inflows are $15,000 per year for 12 years, and its WACC is 10%. What is the project's payback? Round your answer to two decimal places.
3. When the Fed lowers the discount rate, what will happen to your SML and the CML respectively?
4. Assume that the one year interest rate in the united states is 7 percent and in the united kingdom 5 percent according to the international fisher effect the British pounds spot exchange rate should ____ by about _____ over the year.