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Your company, A Canadian Firm, is deciding to invest in Risk Free securities in India. The investment has a 7% quoted interest rate Given the

Your company, A Canadian Firm, is deciding to invest in Risk Free securities in India. The investment has a 7% quoted interest rate

Given the following, determine the effective yield based on the following (5 Marks)

Probability

Change in currency

60%

1%

40%

-8%

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