Assume the current spot rate for the Norwegian krone is $1 = NKr7.0323, the expected...
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Finance
Assume the current spot rate for the Norwegian krone is $1 = NKr7.0323, the expected inflation rate in Norway is 2.1 percent and 1.2 percent in the U.S. A risk-free asset in the U.S. is yielding 3.7 percent. What nominal risk-free rate of return should you expect on a Norwegian security?
4.2%
2.9%
4.6%
3.8%
3.1%
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