What is the real rate of return measured in us
Assume that parity holds. At t=0, a U.S. investor purchases a British Stock at 0.7 Euros. 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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assume that parity holds consider a us stock that costs 80 over the year the stocks dollar-denominated return was 20 us
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