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2. A) A U.S. investor just sold a share of Sony, a Japanese firm. for Y100.000. The share was purchased a year ago for Y120.000.

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2. A) A U.S. investor just sold a share of Sony, a Japanese firm. for Y100.000. The share was purchased a year ago for Y120.000. The exchange rate is Y140 S now and was Y190 $ a year ago. Compute the rate of return on this investment in dollars as well as in 1 yen. Assume no dividend was received during the holding period. RFC = Ryen -0.1667 AS 0.3571 Rs 13.09% B) If the U.S. investor had received Y5,000 as a cash dividend immediately before the share was sold. how would this affect the return calculations? RFC = Rien -0.1250 AS 0.3571 Rs 18.75%

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