Assume the Following Information: Current Spot Rate of Australian Dollar

question 70

Multiple Choice

Assume the following information: Current spot rate of Australian dollar
=
$) 64
Forecasted spot rate of Australian dollar 1 year from now
=
$) 59
1-year forward rate of Australian dollar
=
$) 62
Annual interest rate for Australian dollar deposit
=
9%
Annual interest rate in the United States
=
6%
​
Given the information in this question, the return from covered interest arbitrage by U.S. investors with $500,000 to invest is ____percent.

• A) about 6.60
• B) about 9.00
• C) about 7.33
• D) about 8.14
• E) about 5.59

Define and distinguish between ethnocentrism and cultural relativism.

Understand the role of norms, values, and beliefs in shaping behaviors within societies.

Analyze the effects of androcentric language and attempts to reduce gender biases in language.

Describe the differences between high culture, popular culture, subcultures, and countercultures.

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Definitions:

Range

The difference between the highest and lowest values in a set of numbers.

Simplify

The process of reducing an expression to its most basic form.

Evaluate

To determine the worth of a given expression.

Simplify

To reduce a mathematical expression to its simplest form.