1. Which of the below equation represents an appropriate discount rate for a project?
Discount Rate = Real Rate - Default Premium + Risk Premium of Project
Discount Rate = Real Rate + Inflation + Risk Premium of Project
Discount Rate - Real Rate + Inflation - Risk Premium of Project
Discount Rate = Risk-free Rate + Inflation + Risk Premium of Project
2. ______ is the risk faced by companies involved in international trade.
Transaction exposure
Operating exposure
Translation exposure
Contract exposure