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