Nittany Banking Corporation (NBC) - a US firm - has US$200 million worth of one-year loans in the US, earning an average rate of return of 6 percent. NBC also has one-year Canadian dollar loans of C$110 million, earning 8 percent in Canada. These are NBC's assets. They amount to US$300 million in total (use the spot rate to convert C$ to US$).

NBC's funding source is US$300 million one-year deposits in the US, on which it's paying 4 percent interest. These are NBC's liabilities. They also amount to $300 million in total.

The spot rate is C$1.10 per US$1. The one-year forward rate is C$1.14 per US$1.

NBC hedges its currency risk fully using forwards.

What is NBC's weighted average return equal to?