Question
A Japanese investor assumes that the IFE does not hold. Suppose interest rates are 6% in the U.S. and 1% in Japan. The initial exchange
A Japanese investor assumes that the IFE does not hold. Suppose interest rates are 6% in the U.S. and 1% in Japan. The initial exchange rate is 100/$. What is the percentage rate of return for a Japanese investor who starts with 1,000,000 assuming that over the year the exchange rate goes to 97/$? A. 3.00% B. 2.82% C. 8.16% D. 4.00%
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International Project Finance
Authors: Felix I. Lessambo
1st Edition
3030963896, 978-3030963897
