Welles Fargo Bank, based in Los Angeles, California, can borrow 8 million U.S. dollars (USD) at 4% annualized. It can then invest in either the euro (EUR), the Australian dollar (AUD), or the New Zealand dollar (NZD). For simplicity, suppose that the lending rate of all of the euro, the Australian dollar, and the New Zealand dollar is 3% annualized over a 3-day time period. The spot rates and the expected rates of the euro, Australian dollar and the New Zealand dollar are given in the table below. Spot Rate EUR-USD AUD-USD NZD-USD 1.0993 0.6696 0.6206 Expected Spot Rate After 3 days 1.1158 0.6863 0.6268 Questions: Based on the information given above, determine in which currency should Welles Fargo Bank invest: EUR, AUD or NZD? Justify your answer. Calculate the potential profit in U.S. dollars. Calculate the effective rate of return on investment.