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1. A French investor buys 100 shares of IBM on January 1 on the NYSE for $120. The $/euro exchange at the time of purchase

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1. A French investor buys 100 shares of IBM on January 1 on the NYSE for $120. The $/euro exchange at the time of purchase is 1.02 One year later, the investor sells IBM for $135 and the $/euro exchange rate is 1.18. Ignoring commissions, what is the rate of return on the investment in euro terms? (8 pts)

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