Business, 27.02.2020 22:59, northsidehotboy

Suppose that the annual rate of returns on dollar deposits equals 2% and the rate of return on euro deposits is 1%. Furthermore, assume that expected exchange rate in a year is $1.1=1 euro and the current exchange rate is $1.08=1 euro. Should you invest in dollar deposits or euro deposits?

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Suppose that the annual rate of returns on dollar deposits equals 2% and the rate of return on euro...