Question: what's the correct answer If the dollar interest rate is 10% and the euro interest rate is 6%, then an investor should Invest only in

what's the correct answer

If the dollar interest rate is 10% and the euro interest rate is 6%, then an investor should Invest only in euros. Invest only in euros if the expected dollar depreciation against the euro is 4%. Invest only in dollars. Be indifferent between dollars and euros if the expected dollar depreciation against the euro is 4%. Invest only in dollars if the expected dollar depreciation against the euro is 4%

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