Suppose the current exchange rate between the US dollar $($USD$)$ and the euro $($EUR$)$ is $1$ USD $=0\mathrm{.}85$ EUR. Additionally, assume that the expected rate of return on US assets is $8\%$ and the purchasing price of a US asset is $$100.$ Calculate the expected rate of return on this US asset in terms of euros. $[5]$

How does the ability of international investors to quickly and easily switch between domestic and foreign assets impact the relationship between exchange rates and asset prices, particularly in terms of expected rates of return?