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Use the following to answer questions 6 - 9 DEF, LLC is a US-based MNC that is considering making an investment in the money market
Use the following to answer questions 6 - 9 DEF, LLC is a US-based MNC that is considering making an investment in the money market in Columbia. The annual rate of return available on money market investments in Columbia is 16% and the current exchange rate is COP 2920 / USD. [COP = Columbian Peso). Suppose they make the investment and liquidate it in one year at an exchange rate of COP 3009 / USD. Question 9 4 pts Suppose DEF could earn 2% on a USD-denominated investment of the same risk level as the Columbian investment. Their strategy would prove beneficial provided the value of the COP does not /USD during the investment period. Depreciate to 2750 Appreciate to 2900 Depreciate to 3322 O Appreciate to 3155
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