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  3. 7) assume u.s. and swiss investors require a real

7) Assume U.S. and Swiss investors require a real rate of return of 3%. Assume...

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Finance

7) Assume U.S. and Swiss investors require a real rate of return of 3%. Assume the nominal U.S. interest rate is 8% and the nominal Swiss rate is 4%. According to the international Fisher effect, the franc will ____ by about ____.

a.

appreciate; 3%

b.

appreciate; 4%

c.

depreciate; 3%

d.

depreciate; 2%

e.

appreciate; 1%

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