Explain why a us investor will not be willing to invest in


Suppose that Canadian investments offer 5% interest on deposits and US investments offer 3.5% interest on deposits. Assuming that all other non-exchange rate risks are already captured in these rates, explain why a US investor will not be willing to invest in Canada to take advantage of the higher interest rate. Explain precisely by appealing to concepts and using numerical computations.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Explain why a us investor will not be willing to invest in
Reference No:- TGS02800913

Expected delivery within 24 Hours