Solution-Expect on a risk-free norwegian security

Expect on a risk-free norwegian security

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Reference no: EM131769141

Assume the current spot rate for the Norwegian krone is $1=NKr6.83, the expected inflation rate in Norway is 2.4% while it is 2.6 in the U.S. A risk-free asset in the U.S. is yielding 4.5%. What real rate of return should you expect on a risk-free Norwegian security?

A. 4.3%

b. 4.7%

c. 1.9%

d. 2.1%

e. 2.4%

Reference no: EM131769141

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Expect on a risk-free norwegian security

Reference no: EM131769141

Reference no: EM131769141

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