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Suppose the current spot rate for the Norwegian krone is $1 = NKr5.5923. The expected inflation rate in Norway is 2.2 percent and in the

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Suppose the current spot rate for the Norwegian krone is $1 = NKr5.5923. The expected inflation rate in Norway is 2.2 percent and in the U.S. 1.8 percent. A risk-free asset in the U.S. is yielding 3.4 percent. What approximate real rate of return should you expect on a risk-free Norwegian security? 1.6 percent 2.0 percent .4 percent 3.8 percent 3.0 percent

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