How high does the lending rate in the euro zone have to be before an arbitrageur would NOT consider borrowing dollars,trading for euro at the spot,investing in the euro zone and hedging with a short position in the forward contract? 
Definitions:
Capital Gains
The profit earned from the sale of assets or investments when the selling price exceeds the purchase price.
CAPM
Capital asset pricing model. A statistical model of the investment world aimed at explaining how required returns are determined in financial markets and thereby how stock prices are set. Also see SML.
Risk-Free Interest
The return on investment with no risk of financial loss, typically associated with government bonds.
Firm's Beta
A measure of a stock's volatility in relation to the overall market, indicating the stock's risk level.
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