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Suppose a US investor has $ 1 9 5 0 to invest and can choose either a US investment paying 4 . 9 % or

Suppose a US investor has $1950 to invest and can choose either a US investment paying 4.9% or a foreign investment paying Rf%, where e is currently 11.7 and future e in one year is 13.2. What value of Rf would leave the investor indifferent between investing at home or abroad?

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