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What is the rate of return on a USD500,000 investment when the price level in the US is USD19,440, the price level in the UK

What is the rate of return on a USD500,000 investment when the price level in the US is USD19,440, the price level in the UK is GBP13,784 and the spot rate is USD1.38/GBP?

a.

2.511%

b.

2.145%

c.

2.198%

d.

3.052%


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