kriptek2003 kriptek2003

30-05-2023
Business

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(Macroeconomics)
Yen/Dollar Spot exchange rate = 100 Yen
Yen/Dollar Expected Spot exchange rate after 1 year = 97 Yen
The interest rate in Japan for 1 year = 4%
The interest rate in the US for 1 year = 5%
If Japanese assets have a risk premium of 3%, explain where the funds will go.

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