Question 24 Which one of the following market conditions will produce a profit for a hedge-fund manager that is planning to borrow in UK and invest in the US. One could answer this question without a calculator. Market Condition 1 Market Condition 2 Market Condition 3 Market Condition 4 O Market Condition 1 O Market Condition 2 O Market Condition 3 O Market Condition 4 Interest Rate in US 12% 12% 12% 12% Interest Rate Expected Annual Percentage Change in in UK the Direct Quote for the British Pound -1% 15% 12% 16% 14% 5 pa 3% -7% 1%