Suppose the current spot rate for the Norwegian kroner is $1 = NKr6.6869. The expected inflation rate in Norway is 6 percent and in the U. S. it is 3.1 percent. A risk-free asset in the U. S. is yielding 4 percent. What risk-free rate of return should you expect on a Norwegian security?
A. 4.5 percent
B. 4.0 percent
C. 6.9 percent
D. 5.0 percent
E. 3.5 percent
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose the current spot rate for the Norwegian kroner is $1 = NKr6.6869. The expected inflation rate in Norway is 6 percent and in the U. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Beta Corporation is planning operations for the coming year. Beta uses normal costing and applies overhead on the basis of direct labor hours.
Answers (1)
Which of the following statements is true? Group of answer choices The glass ceiling allows women to efficiently strike a balance between their personal lives and careers.
Answers (1)
During the improving economic conditions of 2015 and early 2016 much additional construction of homes and condos throughout much of the U. S. took place. This provided a significant increase in the income of workers in the construction trades.
Answers (1)
The feasibility of a multinational project from the parent's perspective is dependent not on the subsidiary cash flows but on the cash flows that it ultimately receives. True False
Answers (1)
A company that applies process costing is most frequently characterized by:A. Low standardization and high production volume. B. Custom orders and homogeneous products. C. Repetitive production and heterogeneous products. D.
Answers (1)
New Questions in Business
One day a supplier supplied 300 units of a good at $20 per unit. A week later the same supplier supplied the same number of units at $10 per unit. Based on this evidence the supplier has experienced: a a decrease in quantity supplied.
Answers (2)
The aims of mercantilists do not include a. achieving power and wealth for the state. b. achieving political and economic unity
Answers (1)
In Japan, it's called kuroi kiri (black mist), in Germany, it's schmiergeld (grease money), Mexicans refer to la mordida (the bite), the French say pot-de-vin (jug of wine), and Italians speak of the bustarella (little envelope).
Answers (1)
Businesses that engage in ultrahazardous activities are strictly liable for any injuries. a. True b. False
Answers (1)
Increasing the amount of credit that is available within an economy is done through? Expansionary monetary policy or contractionary?
Answers (2)