Exhibit 11.1 Assume the Following

question 193

Multiple Choice

Exhibit 11.1 Assume the following:
(1) the interest rate on 6-month treasury bills is 8 percent per annum in the United Kingdom and 4 percent per annum in the United States;
(2) today's spot price of the pound is $1.50 while the 6-month forward price of the pound is $1.485.
-Refer to Exhibit 11.1.If U.S.investors cover their exchange rate risk,the extra return for the 6 months on the U.K.treasury bills is:

• A) 1.0 percent
• B) 1.5 percent
• C) 2.0 percent
• D) 2.5 percent

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Definitions:

Performance Standard

The expected level of performance set by an organization against which employee output or accomplishments can be measured.

Culture of Ownership

An organizational environment where employees feel psychologically part of the company, fostering responsibility, engagement, and innovation.

Employee Stock Ownership Plans

An employee benefit plan giving workers ownership interest in the company, often as a form of retirement plan.

Team Behaviours

The actions or reactions of a group working together towards a common goal.