Giri Tyer is European analyst and strategist for Tristar Funds, a New Yorkbased mutual fund company. Mr. Jyer is currently evaluating the recent performance of shares in Pacific Wietz, a publicly traded specialty chemical company in Germany that is listed on the Frankfurt DAX. He gathers the following quotes:

a. What was the return on the security in local currency terms?

b. What was the return on the security in U.S. dollar terms?

c. Does this mean it was a good investment for a local investor, a U.S.based investor, or both?

Transcribed Image Text:

Element Jan 1 Purchase Dec 31 Sale Distributions Share price 135.00 157.60 15.00 Exchange rate $1.0660/ $1.1250/