Q1. Suppose that you already have 500,000 JPY to invest assets in Japan.

However, the dollar has appreciated 10%.

(Note that the dollar appreciates by 10% when the exchange rate increases from 100JPY/USD to 110JPY/USD.

However, the yen does not depreciate by 10%.

The yen depreciates by 9.1% when the exchange rate decreases from 1/100 USD/JPY to 1/110 USD/JPY.)

Let's assume that you can earn a 5% return in the United States with equal risk and liquidity.

Then, which of the following rate of return will make the foreign investment more attractive than the domestic investment?

Select the minimum rate of return that satisfies the requirement.

(1)10% (2)11% (3)12% (4)13% (5)14% (6)15% (7)16% (8)17% (9)18% (10)19% (11)20%