1 Suppose you had invested $500,000 for 6 months in the United States and in Europe and...

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1 Suppose you had invested $500,000 for 6 months in the United States and in Europe and interest rates and exchange rates are as follows:

r$ r¤ S($/¤) S1/2($/¤)
5% 8% 1.1000 1.0800 S($/¤) is the exchange rate when the investment was made, and S1/2($/¤) is the actual rate 6 months later. Was foreign investment a good idea?

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International Finance

ISBN: 9780070374812

4th Edition

Authors: Maurice D. Levi

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Question Posted: Jul 23, 2024 11:02 AM

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1 Suppose you had invested $500,000 for 6 months in the United States and in Europe and...

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International Finance

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