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What would be the real rate of return on the assets

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Reference no: EM132667460

Problem 1: Calculate the dollar rates of return on a € 20,000 deposit in a Paris bank in a year when the interest rate on euro is 5% and the $/ € exchange rate moves from $1.30 per euro to $1.25 per euro. What would be the real rate of return on the assets if simultaneous 5% increase in all dollar prices was observed?

Reference no: EM132667460

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