Exchange rate movements suppose a basket of goods in paris costs euro 130 and the same basket purchased in new york costs $ 154. a. at what exchange rate between euros and dollars is the cost of the basket the same in each city? b. now suppose that over the next year inflation in france is expected to be 3% while in the u. s. the forecast is for 6% inflation. what exchange rate do you expect a year from now?

Which of the following statements is not correct? the stock of publicly owned companies must generally be registered with and reported to a regulatory agency such as the sec. when stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public, or an ipo," and the market for such stock is called the new issue or ipo market. "going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares. if you wanted to know what rate of return stocks have provided in the past, you could examine data on the dow jones industrial index, the s& p 500 index, or the nasdaq index.