compute total returns

7. The $/Euro exchange rate increases from 1.10 to 1.155 within a month. Money market interest rates in the Euro area are 1.2% per year. Assume you are a U.S. investor buying Euros and investing them in the Euro money market.

8. The Yen/$ exchange rate increases from 125 to 133.33 within a two-months period. Money market interest rates in the Yen area are 0.3% per year. Assume you are a U.S. investor buying Yen and investing them in the Yen money market.

9. A mutual fund buys 3-month Treasury bills at a yield of 2% and holds them for three months. 10. A bank lends Fed funds to other banks for 15 days. During this period, the overnight Fed funds rate is stable at 2.5%.