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1-year risk-free rate of return in the U.S. is 9% current exchange rate is 1 pound = U.S 1.78 1-year forward rate is 1 pound
| 1-year risk-free rate of return in the U.S. is | 9% | |||||||
| current exchange rate is 1 pound = U.S | 1.78 | |||||||
| 1-year forward rate is 1 pound | 1.8 | |||||||
| What is the minimum yield on a 1-year risk-free security in Britain that would induce a U.S. investor to invest in the British security? | ||||||||
| 9.65% | ||
| 8.46% | ||
| 7.79% | ||
| 6.97% |
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Multinational Finance Evaluating The Opportunities Costs And Risks Of Multinational Operations
Authors: Kirt C. Butler
6th Edition
111921968X, 978-1119219682
