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You are choosing between three 1-year investments: one in Vietnam, one in Thailand, and one in Japan. The investment in Vietnam yields a nominal rate
You are choosing between three 1-year investments: one in Vietnam, one in Thailand, and one in Japan. The investment in Vietnam yields a nominal rate of 11.2% APR compounded monthly, and the monthly inflation in Vietnam is expected to be 0.6%. The investment in Thailand promises a real rate of 4.25% APR compounded daily. The investment in Japan yields a nominal rate of 4.2% APR compounded semi-annually, and the semi-annual inflation in Japan is expected to be 0%. Which investment delivers the highest real rate of return? O A. Vietnam: 3.55%; Thailand: 3.75%; Japan: 4.2%; Answer: Japan O B. Vietnam: 4.05%; Thailand: 4.34%; Japan: 4.24%; Answer: Thailand OC. Vietnam: 14.3%; Thailand: 6.1%; Japan: 6.15%; Answer: Vietnam O D. Vietnam: 11.2%; Thailand: 4.25%; Japan: 4.2%; Answer: Vietnam O E. Vietnam: 6.45%; Thailand: 6.29%; Japan: 6.24%; Answer: Vietnam
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