英语翻译Financial market participants compare expected rates of

英语翻译
Financial market participants compare expected rates of return on instruments denominated in different currencies.the expected nominal rate of return on a foreign investment is the foreign interest rate plus the change in the exchange rate less an adjustment for risk from the uncertainty of the future exchange rate.The expected real return includes an adjustment factor for expected inflation in both countries.In equilibrium,interest tates adjust so that after adjustments have been made for expected inflation and exchange rate risk,returns are equalized across countries.