标题: Mock 2012 L 2 Afternoon Sess, Q 58 on Domestic currency retu [打印本页] 作者: Bluetick1010 时间: 2013-4-20 00:22 标题: Mock 2012 L 2 Afternoon Sess, Q 58 on Domestic currency retu
The one year dollar return on the German Stock index is
Rf on German stock index + Appreciation of the German (foreign currency)
=.0675 + .0376
I failed to understand the third factor in the asnwer (.0376 X .0675)
Thanks in advance for your help.作者: thisisbrianly 时间: 2013-4-20 00:24
It depends on whether you use the approximation formula or you use uncovered interest rate parity formula.
{(1 unit of the DC x FC Return x S1) / S0} - 1 = your return
