Find the minimum required rate of return

Assignment Help Finance Basics

Reference no: EM1344968

A foreign investor placing money in dollar denominated assets desires a 4% real rate of return. Global inflation is running about 3%, and the dollar is expected to decline against his or her home currency by 1.5% over the investment period. Explain what is his or her minimum required rate of return? Explain.

Reference no: EM1344968

Questions Cloud

How much mass does the water in the cloud have : A person of mass 72 stands at the center of a rotating merry-go-round platform of radius 3.40 and moment of inertia 950. The platform rotates without friction with the angular velocity 0.95. The person walks radially to the edge of the platform.

Initial investment and problems in getting it funded : Find a new possible investment item for Lockheed Martin, what problems are you going to have in estimating the cash flow that might be emanating from the initial investment and problems in getting it funded?

Find out the nash equilibrium prices of the procedures : Find out the Nash equilibrium prices of the procedures at the hospitals. find out the profit maximizing monopoly prices of the procedure at each hospital.

What is the radius r of the planet to two significant figure : Assume that, as lying on a beach near the equator of a far-off planet watching the sun set over a calm ocean, you start a stopwatch just as the top of the sun disappears.

Find the minimum required rate of return : Explain what is his or her minimum required rate of return - A foreign investor placing money in dollar denominated assets desires a 4% real rate of return.

Information about global finance : What are some implications of currency depreciation, devaluation, and appreciation for the US Dollar compared to a foreign currency? How does a strong U.S. dollar affect the balance of trade for USA? Why?

Program to print total balances forward and total withdrawal : At the end of report, print total balances forward, total deposits, total interest earned, total withdrawals and total final account balances.

Find out the mass of the worker : While rearranging a dorm room, a student does 292J of work in moving a desk 3.90m. What was the magnitude of applied horizontal force.

What amount of gain has patriot received from transaction : What amount of gain has Patriot received from this transaction and this a capital or ordinary gain?

User Account

All Pages