The british stocks local currency return is 40 what is the
Assume that parity holds. At t=0, a U.S. investor purchases a British stock at £0.7. U. S. inflation is 3%, British inflation is 4%. The British stock’s local currency return is 40%. What is the real rate of return measured in U.S. dollars?
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at time zero the spot rate is 160 per gbp assume the next year the us inflation will be 3 and british inflation 4 what
assume that parity holds at t0 a us investor purchases a british stock at pound07 u s inflation is 3 british inflation
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