Malaysian investor has an amount of RM10 million being invested in a US dollar deposit account at a fixed rate of 6% per annum for one year. The current spot exchange rate is 4.0829 of ringgit Malaysia per unit of US dollar and the relevant forward exchange rate is 3.9286 of ringgit Malaysia per unit of US dollar. (a) Calculate the expected return (in ringgit terms) if the ringgit is expected to appreciate against dollar by 3% during the course of the year. [7 marks] (b) Find the expected exchange rate, at the time the investment is to mature, such that the investor would be indifferent between investing with and without forward cover.. [3 marks]