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A investor invests 1,000 in risk-free British gilts, paying 9%per annum. At the time of making the investment the exchange rate was $2.5= 1.5At the

A investor invests 1,000 in risk-free British gilts, paying 9%per annum. At the time of making the investment the exchange rate was $2.5= 1.5At the end of the year the exchange rate is $1.85= 1. What return has the investor made? What is the broad point with it?

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