Suppose the current spot rate for the Norwegian kroner is $1 = NKr6.6869. The expected inflation rate in Norway is 6 per

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answerhappygod
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Suppose the current spot rate for the Norwegian kroner is $1 = NKr6.6869. The expected inflation rate in Norway is 6 per

Post by answerhappygod »

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?
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