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Business, 21.04.2020 17:31 navjitdosanjh20

Terest rate parity recognizes that when you invest in a country other than your home country, two factors affect your investment—returns on the investment itself and changes in the exchange rate. Which of the following would cause the overall return on your investment to be higher than the investment’s stated return? The currency in which the investment is denominated appreciates relative to your home currency. The currency in which the investment is denominated depreciates relative to your home currency. Your home currency appreciates relative to the currency in which the investment is denominated.

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