3. Global Funds, a US-based mutual fund company is currently evaluating the recent performance of shares in Berkeley Homes, a publicly traded British homebuilder listed on the FTSE 100. The baseline investment amount used by Global is $1,000,000.

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 basedinvestor, or both?

	Jan 1st Purchase	Dec 31st Sale	Distributions
Share price, euros	545.00	667.60	45.00
Exchange rate, US$/euro	$1.260	$1.3450