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Bama Co. believes that the spot rate is the best forecast of the future spot rate...

Bama Co. believes that the spot rate is the best forecast of the future spot rate in one year. It has excess funds that it can invest in money market securities for one year. It can invest in the U.S. at an interest rate of 4%, Japan at an interest rate of 2%, the United Kingdom at an interest rate of 6%, or Brazil at an interest rate of 9%. It would not cover any investment that it takes against exchange rate risk. Its expected return on its investment will be highest in_________________. a. the U.K. b. Japan c. the U.S. d. same in all countries e. Brazi

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