Question: Given the information: Interest rate in US (Rh): Interest rate in UK (RF): Covered rate of return from US (Rch) 4% 6% 5% To set

Given the information: Interest rate in US (Rh): Interest rate in

Given the information: Interest rate in US (Rh): Interest rate in UK (RF): Covered rate of return from US (Rch) 4% 6% 5% To set up a covered interest rate arbitrage, you should borrow in and invest in USD: GBP GBP: USD

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