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7 10 points You are an American investor. Assume that the EUR tends to appreciate unexpectedly against the USD when the return of the rest
7 10 points You are an American investor. Assume that the EUR tends to appreciate unexpectedly against the USD when the return of the rest of your wealth is unexpectedly high. What does this imply for the risk premium required for uncovered interest parlty between the US and Europe to hold? I find investment to be as risky as $ investment and expect be paid the same average return to invest in and in $. I find Investment less risky than $ investment and expect to be paid a tower average return to invest in Ethan in $ I find investment riskier than investment and expect to be paid a higher average return to investinthan in $. find investment riskier than Sinvestment and expect to be paid a lower average return to investin@thanin I find investment less risky than $ investment and expect to be paid a higher average return to invest in Ethan in $. OOOOO
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