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Urgent please 15 min left An American investor is considering to invest in an Indian security with a beta of 1.20 and standard deviation of

Urgent please 15 min left

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An American investor is considering to invest in an Indian security with a beta of 1.20 and standard deviation of returns 8%. The holding period of investment will be one year. The current rupee-dollar exchange rate is * 46/$. The expected depreciation of rupee against dollar is 6% with a standard deviation of 10%. The expected return from the market portfolio in India is 15% and the correlation between the return on security and the exchange rate is 0.10. The risk free rate of return in India is 8%

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