What Is the Expected Dollar Rate of Return on Euro

question 19

Multiple Choice

What is the expected dollar rate of return on euro deposits if today's exchange rate is $1.167 per euro, next year's expected exchange rate is $1.10 per euro, the dollar interest rate is 10%, and the euro interest rate is 5%?

• A) 10%
• B) 11%
• C) -1%
• D) 0%

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Definitions:

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A theoretical approach in psychology that explains human behavior and mental processes through the lens of adaptation and natural selection.