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1. One year ago, an American investor bought 1000 shares of LBR in London at a price of 94 (or 94 UK pounds) per share

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1. One year ago, an American investor bought 1000 shares of LBR in London at a price of 94 (or 94 UK pounds) per share when the exchange rate was $1.35/1 (or $1.35 dollars = 1 pound). The investor also invested 100,000,000 Japanese Yen in a money market fund in Japan last year when the exchange rate was 110 Yen = $1 US. Over the last year, the value of LBR decreased by 10% and the Japanese money market fund increased by 2% (a) Using current exchange rates, show the investor's overall return on the LBR investment, and the return separated into the return on investment and return on exchange rate. (b) Using current exchange rates, show the investor's overall return on the Japanese Yen money market fund, and the return separated into the return on investment and return on exchange rate. (c) What is the overall rate of return on the portfolio over the last year

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