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Your stockbroker informs you that you could earn 2.6% by investing in Petrobras (a Brazilian oil company stock) for a month. The Brazilian real is

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Your stockbroker informs you that you could earn 2.6% by investing in Petrobras (a Brazilian oil company stock) for a month. The Brazilian real is expected to depreciate 2% vis-a- vis the dollar for the month. What would be your effective return in dollar terms on an annual basis? 0.45% 3.5% 7.76% 6.6%

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