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$50,000 to invest in either of the three invest- Saver, Canadian you have As a risk-free rate is 3%. There is no risk-premium on the Cana- ments described below. The world risk-premium of 4%. The current nominal Cad-Brasilian the pay-out next period, you ex- but a Brasilian bond has a dian bond rate is ECAD = 0.7 (Reals per Cad dollar). Before exchange new nominal exchange the Real to depreciate relative to the Cad$ rate, efu- pect to a ture = 0.79. Florida. The current nomi- alternative condo in Your third to buy a is ECAD 0.75 condo nal Cad-US exchange rate is ($US per Cad dollar). You expect the to by 10% but you also forecast the exchange rate to rise to ECAD increase in resale value 0.80. Based on (% yield) the expected rate of return on each forecast, what is your For simplicity fine)? assume zero transaction one decimal place is investment (correct to return on Brasilian Bond: % return on costs. % return Cad Bond: on Florida Condo: please show all work, thank you

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Have I am a Canadian saver having $50,000. Given The world risk free rate of investment is 3% and there is no risk premium in Canadian Band. So here Return in 3% As I have $50,000. Here

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Buy (USD $9.00)