1. What connects the risk-free security with the optimal risky portfolio on the efficient frontier?
2. Assume a U.S.-based MNC has a Swiss subsidiary that annually remits 50 million Swiss francs to the United States. If the franc ____, the dollar value of remitted funds ____.
a. appreciates; increases
b. depreciates; is unaffected
c. appreciates; is unaffected
d. depreciates; increases
e. B and C