When question is asking about all in rate, then whether we should calculate gross return or return net of borrowing cost.
in eg 7 of core, gross return is calculated and in practice problem 1 of core, net return is calculated.
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I’ll look into it and let you know by tomorrow.
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We should calculate the net return in the explanation of the example in the end they have deducted the borrowing cost for yen although options didn’t entertain that.
And the word all in suggests that after the payment of the borrowing is made. So I think we will consider net return.
I also think same