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The current exchange rate between Indian Rupees and Turkish Lira is 5.50 rupees/lira. The exchange rate is expected to be 5.80 rupees/lira next year. Investment

The current exchange rate between Indian Rupees and Turkish Lira is 5.50 rupees/lira. The exchange rate is expected to be 5.80 rupees/lira next year. Investment return in India is expected to be 10% in rupees and investment return in Turkey is expected to be 8% in the lira. Calculate the following:

a) Rate of return to an Indian resident that invests in Turkey.

b) Rate of return to a Turkish resident that invests in India.

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