What is the real rate of return measured

What is the real rate of return measured

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Assume that parity holds. At t=0, a U.S. investor purchases a British Stock at 0.7 Euros. U.S. inflation is 3% British inflation is 4%. The British stock's local currency return is 40%. what is the real rate of return measured in U.S. dollars?

Reference no: EM131535214

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