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Aat you bought dollars when the exchange rate was TL8/S and opened a dollar account with an interest rate of 2% per year. At the end of the year, the exchange rate increased to TL10/S. 15.) What is the nominal rate of return? A) %20.00. B) % 6.25 C) %22.00. D) %10.20. E) %27.50. F) I don't know. 15.) What is the real rate of retum, if all TL prices increased by 20% during the same period? A) 20.00. B)% 6.25. C)22.00. D) %10.20. E) 27.50.

Aat you bought dollars when the exchange rate was TL8/S and opened a dollar account with an interest rate of 2% per year. At the end of the year, the exchange rate increased to TL10/S. 15.) What is the nominal rate of return? A) %20.00. B) % 6.25 C) %22.00. D) %10.20. E) %27.50. F) I don't know. 15.) What is the real rate of retum, if all TL prices increased by 20% during the same period? A) 20.00. B)% 6.25. C)22.00. D) %10.20. E) 27.50.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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15. Suppose that you bought dollars when the exchange rate was TL8/$ and opened a dollar account with an interest rate of 2% per year. At the end of the year, the exchange rate increased to TL10/S. 15) What is the nominal rate of return? A) %20.00. B) % 6.25. C) %22.00. D) %10.20. E) %27.50. F) I don't know. 15.) What is the real rate of retum, if all TL prices increased by 20% during the same period? A) %20.00. B)% 6.25. C) %22.00. D) %10.20. E) %27.50. F)i don't know.
Transcribed Image Text:15. Suppose that you bought dollars when the exchange rate was TL8/$ and opened a dollar account with an interest rate of 2% per year. At the end of the year, the exchange rate increased to TL10/S. 15) What is the nominal rate of return? A) %20.00. B) % 6.25. C) %22.00. D) %10.20. E) %27.50. F) I don't know. 15.) What is the real rate of retum, if all TL prices increased by 20% during the same period? A) %20.00. B)% 6.25. C) %22.00. D) %10.20. E) %27.50. F)i don't know.
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