1. Romianas Returns (A). Jennie Smith is a London- based investor. She has been closely following her investment in 1,000 shares of Romiana, an Italian firm that went public in February 2012. When she purchased her 1,000 shares at 20 per share, the euro was trading at 0.8375/. Currently, the share is trading at 25.25 per share, and the exchange rate is 0.722/.

a. If Jennie sells her shares today, what percentage change in the share price would she receive?

b. What is the percentage change in the value of the euro versus the pound over this same period?

c. What is the total return that Jennie would earn on her shares if she sold them at these rates?

2. omianas Returns (B). Jennie Smith chooses not to sell her shares at the time described in Problem 2. She waits, expecting the share price to rise further after the announcement of quarterly earnings. Her expectations are correct, and the share price rises to 35 per share after the announcement. She now wishes to recalcu- late her returns.

3. Romianas Returns (A). Jennie Smith is a London- based investor. She has been closely following her investment in 1,000 shares of Romiana, an Italian firm that went public in February 2012. When she purchased her 1,000 shares at 20 per share, the euro was trading at 0.8375/. Currently, the share is trading at 25.25 per share, and the exchange rate is 0.722/.

a. If Jennie sells her shares today, what percentage change in the share price would she receive?

b. What is the percentage change in the value of the euro versus the pound over this same period?

c. What is the total return that Jennie would earn on her shares if she sold them at these rates?