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3. Michael invests $10,000 in Bonsai, Inc., which is based in Japan. The conversion rate at the time of the investment is 100 yen to
3. Michael invests $10,000 in Bonsai, Inc., which is based in Japan. The conversion rate at the time of the investment is 100 yen to $1. Michael sells his interest six months later for 1,750,000 yen. However, the exchange rate now is 125 yen to $1. What is Michaels return on the investment (before yen to dollars), return due to exchange rate risk, and net result on the original investment?
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