Question: You are given the following data: i = 3%, i* = 1%, Se = 1.4 ($ per ). Calculate the return on the euro

You are given the following data: i = 3%, i* = 1%,

You are given the following data: i = 3%, i* = 1%, Se = 1.4 ($ per ). Calculate the return on the euro deposit in absolute terms, that is, in S. (Assume that you invest $1). b) Calculate the return on the euro deposit in relative terms, that is, in %. Provide the exact answer. c) Calculate the return on the curo deposit in relative terms, that is, in %. Provide the approximate answer.

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