You are a U.S. investor who purchased British securities for 2,000 one year ago when the British
Question:
You are a U.S. investor who purchased British securities for £2,000 one year ago when the British pound cost U.S.$1.50. What is your total return (denomiated in U.S. dollars) if the value of the securities is now £2,400 and the pound is worth $1.45? No dividends or interest was paid during this period.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (2 reviews)
To calculate the total return in US dollars you need to consider both the change in t...View the full answer
Answered By
Usman Nasir
I did Master of Commerce in year 2009 and completed ACCA (Association of Chartered Certified Accountants) in year 2013. I have 10 years of practical experience inclusive of teaching and industry. Currently i am working in a multinational company as finance manager and serving as part time teacher in a university. I have been doing tutoring via many sites. I am very strong at solving numerical / theoretical scenario-based questions.
4.60+
16+ Reviews
28+ Question Solved
Related Book For
ISE Essentials Of Investments
ISBN: 9781265450090
12th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
Question Posted:
Students also viewed these Business questions
-
You are a Canadian investor who purchased British securities for 2,000 one year ago when the British pound cost C$ 1.50. What is your total return (based on Canadian dollars) if the value of the...
-
You are a U.S. investor who purchased British securities for 2,000 one year ago when the British pound cost U.S. $1.50. What is your total return (based on U.S. dollars) if the value of the...
-
26. With its current leverage, Impi Corporation will have net income next year of 4.5 million. If Impis corporate tax rate is 35% and pay 8% interest on its debt, how much additional debt can Impi...
-
An airplane is flying at 32,000 feet when it starts its decent. It is descending at a rate of 2000 feet per minute. Let x represent the minutes of the flight's descent and y represent the planes...
-
The Taylor Company issued $100,000 of 13% bonds on January 1, 2007. The bonds pay interest semiannually on June 30 and December 31 and are due December 31, 2009. Required 1. Assume the company sells...
-
Anglo Corporation has a current ratio of 1.1:1. Jon has always been told that a corporations current ratio should exceed 2.0:1. The company maintains that its ratio is low because it has a minimal...
-
Using the following information, draw up the Balance Sheet given below: Gross Profit (25% of Sales) Rs. 1,50,000 Credit Sales to Total Sales 60% Total Sales/Total Assets 2.5 time Stock Velocity 2...
-
Assume that you are a high-level manager for a shoe manufacturer. You know that your firm could increase its profit margin by producing shoes in Indonesia, where you could hire women for $100 a month...
-
CarCity is a big retailer for car parts and accessories. The store stocks different types and sizes of car tire. One of the best selling tires is the Tiger Model R125, which is currently purchased...
-
What are the arbitrage strategy and associated profits if the initial future price is F 0 = $1.35/pound?
-
Do you agree with the following claim? U.S. companies with global operations can give you international diversification. Think about both business risk and foreign exchange risk.
-
Complete a comparative income statement for Asher Co. for December 31, 2012, and December 31, 2013. (Round to the nearest hundredth of a percent asneeded.) 2013 2012 Net Sales Cost of Goods Sold...
-
Performance management systems that do not make true contribution to the organizational goals are not true performance management systems. List and describe at least five contributions a good...
-
How do cognitive biases, such as confirmation bias and anchoring, influence strategic decision-making processes at the executive level, and what measures can be implemented to mitigate their impact ?
-
How do multi-track diplomacy frameworks, integrating official, unofficial, and grassroots efforts at different levels of society, enhance the effectiveness and inclusivity of conflict resolution...
-
As explained by Welch, what should managers do to determine what their own organizations have been up to ?
-
As an administrator how do you demonstrate below situation with suitable examples. 1 Completes tasks to a high standard 2 Demonstrates the necessary level of expertise required to complete tasks and...
-
(a) How many permutations of size 3 can one produce with the letters m, r, a, f, and t? (b) List all the combinations of size 3 that result for the letters m, r, a, f, and t.
-
Use the following data to answer the next two (2) questions: Product 1 Product 2 Product 3 Direct Material Cost $25,000 $30,000 $35,000 Direct Labor Cost $30,000 $40,000 $50,000 Direct Labor Hours...
-
If the simple CAPM is valid, which of the following situations are possible? Explain. Consider each situationindependently. Standard Deviation Expected Return 10 18 16 Portfolio Risk-free Market 24
-
I am buying a firm with an expected perpetual cash flow of $1,000 but am unsure of its risk. If I think the beta of the firm is .5, when in fact the beta is really 1, how much more will I offer for...
-
Two investment advisers are comparing performance. One averaged a 19% rate of return and the other a 16% rate of return. However, the beta of the first investor was 1.5, whereas that of the second...
-
Suppose the following input prices are provided for each year: Required: $
-
A local bookstore is considering adding a coffee shop to their store. Building the coffee shop will cost $256,340.00 today. The bookstore is going to try this project for five years. The bookstore...
-
April corporations subchapter S election was voluntarily terminated for year 1. The first year that April would be eligible to reelect S corporation status is A. Year 2 B. Year 3 C. Year 4 D. Year 5
Study smarter with the SolutionInn App