If the interest rate is 7 percent on euro-denominated assets and 5 percent on dollar-denominated assets,and if the dollar is expected to appreciate at a 4 percent rate,the expected return on ________-denominated assets in terms of ________ percent.
A) dollar;euros is 3
B) euro;dollars is 1
C) dollar;euros is 9
D) euro;dollars is 11
Correct Answer:
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