1. Explain the monetary model, the Mundell-Fleming model and/or the Dornbusch model and its extensions.
2. Which investment would Miriam choose based solely on the expected return? [Write either A or B in answer space below.]
3. Starbucks Company paid a dividend of $1.20. Its current stock price now is $57.84 and is expected to reach $60.86 at the end of the year:
What is the expected return on the stock?