What is the expected rate of return to an Indian investor

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Question - The average rate of return in Indian stocks is 20%. The average rate of return in Australian stocks is 15%. Australian dollar appreciated by 10% relative to the Indian Rupees during the year.

a) What is the expected rate of return to an Indian investor investing in Australia?

b) What is the expected rate of return to an Australian investor investing in India?

c) What percentage appreciation or depreciation of the Australian Dollar relative to Indian Rupees would make the two investors (in a and b) earn the same rate of return?

Reference no: EM132805175

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