I wonder also about question e her. The professor is saying that we need 10 NOK to purchase one USD. Which means that NOK/USD = 10.00 because for each USD you get 10 NOK In the rest of the questions he is saying that we need 11 NOK to purchase one GBP. Which means that NOK/GBP = 11 because for each GBP you get 11 NOK When we are trying to find GBP/ USD arent we suppose to divide 11 (NOK/GBP)/10 ( NOK/USD) ? Since if we do that, the answer would be for each USD we get x amount of GBP. As I have understood so far is when you have for example NOK/ USD = 9.00 that means that for one USD you get 9.00 NOK. Like 1 USD = 9.00 NOK.Could you please explain to me this and eventually why its wrong, since it seems that my thinking is wrong. I want to understand why so when I to problem sets or examples and know why it is like that.
I wonder also about question e her. The professor is saying that we need 10 NOK to purchase one USD. Which means that NOK/USD = 10.00 because for each USD you get 10 NOK In the rest of the questions he is saying that we need 11 NOK to purchase one GBP. Which means that NOK/GBP = 11 because for each GBP you get 11 NOK When we are trying to find GBP/ USD arent we suppose to divide 11 (NOK/GBP)/10 ( NOK/USD) ? Since if we do that, the answer would be for each USD we get x amount of GBP. As I have understood so far is when you have for example NOK/ USD = 9.00 that means that for one USD you get 9.00 NOK. Like 1 USD = 9.00 NOK.Could you please explain to me this and eventually why its wrong, since it seems that my thinking is wrong. I want to understand why so when I to problem sets or examples and know why it is like that.
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
Problem 1PS
Related questions
Question
Transcribed Image Text:I wonder also about question e her. The professor is
saying that we need 10 NOK to purchase one USD.
Which means that NOK/USD = 10.00 because for each
USD you get 10 NOK In the rest of the questions he is
saying that we need 11 NOK to purchase one GBP.
Which means that NOK/GBP = 11 because for each
GBP you get 11 NOK When we are trying to find GBP/
USD arent we suppose to divide 11 (NOK/GBP)/10 (
NOK/USD) ? Since if we do that, the answer would be
for each USD we get x amount of GBP. As I have
understood so far is when you have for example NOK/
USD = 9.00 that means that for one USD you get 9.00
NOK. Like 1 USD = 9.00 NOK.Could you please explain
to me this and eventually why its wrong, since it seems
that my thinking is wrong. I want to understand why so
when I to problem sets or examples and know why it is
like that.
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