If the Expected Sharemarket Yield in Australia Is 16% Per

Multiple Choice

If the expected sharemarket yield in Australia is 16% per annum and the expected annual depreciation of the AUD/USD exchange rate is 4%, then 'share market parity' (SMP) says that:

A) the authorities can reverse the fortunes of the AUD by reducing the return on the Australian sharemarket.
B) the expected sharemarket return in the US is 12%.
C) the Australian sharemarket's apparent outperforming of the US market is simply a statistical effect.
D) the expected sharemarket return in the US is 20%.