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International financial management Suppose a US investor has $1,000 to invest for a year and he's pondering to invest oversea. The annual interest rate is

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International financial management

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Suppose a US investor has $1,000 to invest for a year and he's pondering to invest oversea. The annual interest rate is 7% per annum in France (oversea). The spot exchange rate is 0.99 per dollar and the one- year forward exchange rate is 1.01 per dollar. The investor does not wish to bear any exchange risk. Compute his HPR return. Enter percent, round to 2 decimal places. S

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