Different theories about why non-financial firms

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1. Identify and describe at least three different theories about why non-financial firms would want to use currency swaps. Explain why you chose your selected theories and why you consider them to be more important than other theories on this topic.

2. Stock A has a beta of 1.8 and an expected return of 12.8 percent. Stock B has a beta of 1.10 and an expected return of 12.70 percent. At what risk-free rate would these two stocks be correctly priced?

Reference no: EM131346574

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