If the Direct Quotation for the Euro Is $1

question 51

Multiple Choice

If the direct quotation for the euro is $1.3565/euro, what is the size of the indirect quotation?

• A)0.2415
• B)0.6435
• C)0.7372
• D)0.3565

---

Definitions:

Required Rate Of Return

The minimum annual percentage return an investor expects to achieve by investing in a particular asset.

Internal Rate Of Return

A metric used in capital budgeting to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Required Discount Rate

The minimum expected rate of return on an investment, used in the discounting process of present value calculations.