Consider a U.S. investor who invests in WalMex at 40.25 pesos when the value of the peso stated in dollars is $0.10. One year later, WalMex is at 52.35 pesos, and the stock paid no dividend. The peso is now at $0.093, which means that the dollar appreciated against the peso: 

Return relative (1 + R_FA) for WalMex = 52.35 / 40.25 = 1.3006 

Since the stock paid no dividends, WalMex’s return in terms of foreign currency (R_FA) for the year was 30.06 percent. 

The return to the U.S. investor after currency adjustment is 

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$0.093 $0.10 R denominated in $ = 1.3006 x- -1.0 = [1.3006×0.93] -1.0 = 1.2096-1.0 = 0.2096 or 20.96%