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Bank of America is currently considering a 70% GBP and 30% EUR portfolio investment with a 3-month term. Know that the investment interest rates for

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Bank of America is currently considering a 70% GBP and 30% EUR portfolio investment with a 3-month term. Know that the investment interest rates for the same term of EUR and GBP are 1% and 1.2%. Exchange rate fluctuations of EUR and GBP against USD are both 2% with 35% probability, +2% with 65% probability. What is the expected effective rate of return achieved by Bank of America

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