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The following condition exist in the international financial markets: interest rate in Turkey = 6% interest rate in South Korea = 2% expected appreciation of
The following condition exist in the international financial markets:
interest rate in Turkey = 6%
interest rate in South Korea = 2%
expected appreciation of the South Korean won relative to the Turkish lira = 3%
A Turkish investor can expect to earn a _____ rate of return on an investment in South Korea.
2%
5%
-1%
3%
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