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Assume that at the beginning of the year, the US annual interest rate is 6.5%, and the Canadian interest rate is 8.5%. The beginning spot

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Assume that at the beginning of the year, the US annual interest rate is 6.5%, and the Canadian interest rate is 8.5%. The beginning spot exchange rate C$/$ = 1.3138 and at the end of the year, the spot rate C$/$ = 1.3326. What is the effective return on investment for a US firm if it invests in Canada for one year on an uncovered basis? O 2.00% O 8.02%. O 6.97% 0.4.99% 10.05%

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