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16. What is the expected dollar rate of return on euro deposits iftoday's exchange rate is $1.10 per euro, next year's expected exchange rate is

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16. What is the expected dollar rate of return on euro deposits iftoday's exchange rate is $1.10 per euro, next year's expected exchange rate is $1.20 per euro, the dollar interest rate is 10%, and the euro interest rate is 5%? A) (2pts) Calculate the expected dollar rate of return on euro deposits. ANSWER: B] (Zpts) Given the result above, if you were an investor, would you hold wealth in the form of euro or dollar deposits? Explain why

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