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Question: Assume that parity holds. At t=0, a U.S. investor purchases a British stock at £0.7. U. S. inflation is 3%, British inflation is 4%. The British stock's local currency return is 40%. What is the real rate of return measured in U.S. dollars? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

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