Comparing fixed to flexible exchange rate, the response of an economy to a temporary fall in foreign demand for its exports is

James Sigmund, CFA, is the Head of International Equity for Pell Global Advisors (PGA). Sigmund is considering investing in the country of Zuflak as part of an emerging market portfolio. Sigmund is aware of the risks in investing in emerging markets and is preparing a valuation report regarding this investment. He estimates that Zuflak government debt would be rated BB, and has gathered the following market information for use in analyzing Zuflak.

Local Government Bond Yield= 11.50%

U.S. 10 year Treasury Bond Yield= 4.50%

U.S. BB rated Corporate Bond Yield= 7.75%

Local Inflation Rate= 6.50%

U.S. Inflation Rate= 3.00%

To assist in his analysis of Zuflak, Sigmund has asked Stefano Testorf, CFA, to estimate a value for Kiani Corporation (Kiani), Oleg Industries (Oleg), and Malik Incorporated (Malik) - the three primary companies domiciled in Zuflak that Sigmund has determined to have adequate liquidity for inclusion in PGA’s client portfolios. Testorf gives Sigmund a rough draft of his report and tells Sigmund that in order to account for country specific emerging market risks, he used a probability-weighted scenario analysis to adjust cash flows. Sigmund asks him, “Why didn’t you simply adjust the discount rate？” Testorf replies with three reasons:

Reason 1: The country risk attributable to Zuflak can be diversified away according to modern finance theory, and should not be included in the cost of capital.

Reason 2: Companies in emerging markets tend to exhibit wild price swings both up and down, therefore adjusting cash flows is the best way to account for these symmetrical country risks.

Reason 3: Although Kiani, Oleg, and Malik are all domiciled in Zuflak, each of these companies will tend to respond differently to country risks. This makes it virtually impossible to adjust the discount rate for country specific risk and come up with an accurate valuation estimate.

After careful analysis by Sigmund and his team, Sigmund decides that he wants to have exposure to Zuflak in his international portfolios. He is still unsure however, what the best way would be to establish the exposure. Sigmund discusses his concerns with Steve Solak, another portfolio manager with PGA. Solak suggests that Sigmund consider using a closed-end country fund to invest in Zuflak. Solak hands Sigmund a copy of a note that he had provided to a client listing facts about country-specific closed end funds. The note contained the followingstatements:

Closed-end country funds provide an excellent means to access local foreign markets. Even nations that have restrictions on foreign investment are sometimes accessible using closed-end country funds.

Closed-end country funds issue a fixed number of shares and are a great way to diversify a U.S.-dollar stock portfolio because of their low correlation with the U.S. stock market.

Sigmund thanks Solak for the information and heads back to his office. As he is leaving, Solak asks him if he would have time later that afternoon to discuss the use of American Depository Receipts (ADRs).

Part 4)

Due to the high inflation rate of the local country, Testorf calculates the return on invested capital (ROIC) for Kiani by revaluing the company’s fixed assets. In comparing the performance of Zuflak to other local companies, the ROIC calculation should:

A)exclude goodwill.

B)exclude depreciation.

C)not revalue fixed assets.

D)exclude net operating profit adjusted for taxes.

B、The writer can focus on completely explaining one subject in each paragraph.

C、The writer will personalize or reflect on the comparison made in the third paragraph.

D、The use of an introduction and conclusion are unique to this style. of writing.

正确答案： A

5 When looking at our writing, we should ask ourselves if we are ________ two things from a certain perspective or ________ one subject.

A、Comparing

B、Explaining

C、Engaging

D、Elaborating

E、Invigilating

F、Conflating

G、Initiating

A、Invalid

B、Fixed

C、Open

D、Wontfix

E、Assign

F、Reopen

G、Postpone

H、Duplicate

A、bug属主操作步骤描述

B、bug提交人

C、研发责任人

D、历史留言信息

E、bug提交时间

F、研发修改方法及测试建议

Insurance policies usually contain a (56) clause that excludes a fixed amount of the loss from (57) Casualty insurance policies frequently contain a coinsurance clause in the contract. A coinsurance clause provides that the insurance company shall be liable (58) only a portion of any loss (59) by the insured unless the insured carries insurance which totals a certain percent, frequently 80-90 percent of the fair value of the asset. In the (60) of a loss, the insured recovers from the insurance company that portion of the loss which the face of the insurance policy bears to the amount of insurance that should be carried as required by the coinsurance clause.

(41)

A．deductible

B．exemptible

C．expectable

D．escapable

A.Comparing

B.When compared

C.while comparing

D.When comparing

A.Compared with

B.Compared

C.Comparing with

D.Comparing

.

A) Compared with B) Compared C) Comparing with D) Comparing

A.compared with

B.comparing with

C.compared to

D.comparing to