Suppose the interest rate on six-month treasury bills is 7 percent per year in the United Kingdom and 4 percent per year in the United States. Also, today's spot exchange price of the pound is $2.00 while the six-month forward exchange price of the pound is $1.98. U.S. investors expect that the future spot rate of pounds will be $2.04. By investing in U.K. treasury bills rather than U.S. treasury bills, and NOT covering exchange-rate risk, the approximate extra return that U.S. investors expect to earn for six months is

Torrie is thinking of starting up a small business selling hand-painted wine glasses. She asks her sister, Lisette, if she'd like to join her in setting up a partnership to start the business

What is one disadvantage in joining the partnership that Lisette should consider? A) Lisette should realize that, as an owner of the business, she will be personally responsible for the debts of the business. B) Lisette should realize that her profits in the partnership will always be less than Torrie's profits, since Torrie had the idea to start the business. C) Lisette should realize that Torrie will have complete control over the business because it was her idea. D) Lisette should realize that only Torrie will be allowed to own stock in the business as the founding partner.

Which of the following is an example of bundling?

A) a pair of pants B) a pizza and beer lunch combo C) a bicycle D) All of the above.