During the assigned period, what was the average uncovered rate of return from the US viewpoint for the foreign country?

Use geometric instead of arithmetic averages. Use exact instead of the approximate method.

Norway		2001	2002	2003	2004	2005	2006
	Consumer Price Index:	3.0	1.3	2.5	0.5	1.5	2.3
	Exchange Rates:	2.1	-11.2	-11.4	-4.8	-4.4	-0.5
	Short term interest rates:	7.2	6.9	4.1	2.0	2.2	3.1

USA		2001	2002	2003	2004	2005	2006
	Consumer Price Index:	2.8	1.6	2.3	2.7	3.4	3.2
	Exchange Rates:	6.0	-1.5	-12.3	-8.2	-1.9	-1.5
	Short term interest rates:	3.7	1.7	1.2	1.6	3.5	5.2

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Solution of Rates of Return by using Fisher equation model USA 2001 ... View the full answer