1. Under what circumstances will the net benefit-cost ratio give you a different recommendation about the choice of projects as compared to the recommendation you get using the net present value criterion?
2. Which indexes will re-balancing occur most frequently?
3. What are the main differences between a sensitivity analysis and a Monte Carlo analysis? How do you use the results of a sensitivity analysis to carry out a Monte Carlo analysis?
4. 1. Explain four signals of balance of payment data to managers and investors
2. explain the following:
a. J Curve adjustment
b. Libor
c. optical currency
d. Impossible trinity and the 3 attributes of an ideal currency