Question: Consider the following returns: What is the average return in each market from the point of view of a U.S. investor and of a U.K.
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What is the average return in each market from the point of view of a U.S. investor and of a U.K. investor?
Period United States United Kingdom Exchange Rate" 10% 15% -5% 12% 6% 5% S3 -5% 15% 8% 10% 2.5 2.5 2.0 1.5 2.5 4
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In the text the return due to exchangerate changes R X is shown to be equal to fx t fx t 1 1 where f... View full answer
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