Assume US and Swiss Investors Require a Real Rate of Return

question 3

Multiple Choice

Assume U.S. and Swiss investors require a real rate of return of 3 percent. Assume the nominal U.S. interest rate is 6 percent and the nominal Swiss rate is 4 percent. According to the international Fisher effect, the Swiss franc will ____ by about ____.

• A) appreciate; 3 percent
• B) appreciate; 1 percent
• C) depreciate; 3 percent
• D) depreciate; 2 percent
• E) appreciate; 2 percent

---

Definitions:

Big Data

Data sets that are too large and complex to analyze with conventional data management and data mining software.

Conventional Data Management

Traditional methods of collecting, storing, and processing data, often involving manual procedures or straightforward digital systems.

Data Mining Software

Computer programs designed to process large datasets to identify patterns, trends, and relationships.

Customer Retention

The activities and actions companies take to reduce the number of customer defections and to keep customers loyal to the brand or company.