What Is the Expected Dollar Rate of Return on Dollar

question 68

Multiple Choice

What is the expected dollar rate of return on dollar deposits if today's exchange rate is $1.10 per euro, next year's expected exchange rate is $1.165 per euro, the dollar interest rate is 10%, and the euro interest rate is 5%?

• A) 10%
• B) 11%
• C) -1%
• D) 0%
• E) 15%

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Definitions:

Chyme

The semi-fluid mass of partly digested food that is expelled by the stomach into the duodenum.

Feces

Waste matter discharged from the bowels after food has been digested, essentially solid or semi-solid remains of the food that could not be digested.

Sedentary Activities

Actions or behaviors that involve little physical movement, often associated with sitting and low energy expenditure.

Obesity

A medical condition characterized by excess body fat that presents a risk to health, often defined by a body mass index (BMI) of 30 or higher.