Suppose the Current Spot Rate for the Norwegian Kroner Is

question 34

Multiple Choice

Suppose the current spot rate for the Norwegian kroner is $1 = NKr6.6869.The expected inflation rate in Norway is 6 percent and in the U.S.it is 3.1 percent.A risk-free asset in the U.S.is yielding 4 percent.What risk-free rate of return should you expect on a Norwegian security?

• A)3.5 percent
• B)4.0 percent
• C)4.5 percent
• D)5.0 percent
• E)6.9 percent

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Definitions:

Categorical Variable

A variable that can take on one of a limited, and usually fixed, number of possible values, assigning each individual to a particular group or nominal category.

Type Of Car

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Nominal Level

The simplest level of measurement for variables, where data can be categorized but not ranked or ordered meaningfully.

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The frequency with which individuals or a demographic group attends church services.