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Appreciate against the pound

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Reference no: EM131201643

Suppose you expect during the next year the Australian dollar to appreciate against the pound from 0.5 pound to the dollar to 0.75. How much will you expect to make on an investment of $10,000 in British government securities that will mature in one year and pay interest of 8%?

Select one:

a. -59.5%

b. -28%

c. 8%

d. 28%

Reference no: EM131201643

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