Question: From the excess return formula, calculate the breakeven point knowing the following information: - Spot (or cash) exchange rate = $1.61/. -Investment of $10000

From the excess return formula, calculate the breakeven point knowing the following

From the excess return formula, calculate the breakeven point knowing the following information: - Spot (or cash) exchange rate = $1.61/. -Investment of $10000 for one year. -U.S. interest = 7.90% p.a.: -GBP interest = 12.12% p.a.: -Table of normal law c) at what minimum rate is the investment reimbursed

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The excess return formula is ER Rf Rd Rb where ER is the excess return Rf is the riskfree rate Rd is ... View full answer

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