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Please provide an explanation. The US interest rate (Rh) is 4% and the UK interest rate (Rh) is 7%. Suppose your estimated covered rate of

Please provide an explanation.
The US interest rate (Rh) is 4% and the UK interest rate (Rh) is 7%. Suppose your estimated covered rate of return from home country is (Rch) 5%, then you should borrow in and invest in US; UK If the US interest rate (Rh) is 4% and the Swiss interest rate (Rh) is 3. Suppose your estimated covered rate of return from foreign country is (Rcf) 5%, then you should borrow in and invest in Switzerland; US The US interest rate (Rh) is 4% and the UK interest rate (Rh) is 7%. Suppose your estimated covered rate of return from home country is (Rch) 5%, then you should borrow in and invest in US; UK If the US interest rate (Rh) is 4% and the Swiss interest rate (Rh) is 3. Suppose your estimated covered rate of return from foreign country is (Rcf) 5%, then you should borrow in and invest in Switzerland; US

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