Which of the following expressions gives the expected rate of return on foreign assets in dollar terms?

Question

Quizplus · Accepted Answer

The expected rate of return on foreign assets in dollar terms is given by the formula: R_f = i_f - ΔE X^e /EX, where R_f is the expected rate of return on foreign assets in dollar terms, i_f is the foreign interest rate, ΔE is the expected change in the exchange rate, X^e is the expected exchange rate, and EX is the current exchange rate.

Which of the Following Expressions Gives the Expected Rate of Return