1 Question 25 (1 point) If an exchange rate is quoted as $0.8748/8, what is the value of $1.00 in euros? (enter your answer using four decimal places. For example "0.1234") Page 2 2 Your Answer: Page 3 3 Answer Previous Page Page 25 of 30 Page 4 Submit Qulie O of 30 questions saved 1107 RENG 21 Type here to search 1 Question 26 (1 point) What is the purpose of hedging? Page 2: 2. To increase expenses Page 3 To mitigate risk 3 To turn a profit Page 4 Previous Page Next Page Page 26 of 30 Submit Que 0 of 30 questions saved o Type here to search ING 11:07 23/01/2020 1 1 Page 2 Question 27 (1 point) According to the Fisher Effect, if the UK has inflation of 5%, and the UK has a nominal rate of return - 7%, what should the UK real rate be? (Enter your answer as a whole number with no symbols. For example, if you compute 1.23%, enter "1.23") Your Answer: 2. Page 3 3 Answer Page 4 Previous Page Prae Page 27 of 30 Submit Quli O of 30 questions saved o Type here to search RA ADING