Question
[5.] Suppose a U.S. investor wishes to invest in a British firm currently selling for 40 per share. The investor has $20,000 to invest, and
[5.] Suppose a U.S. investor wishes to invest in a British firm currently selling for 40 per share. The investor has $20,000 to invest, and the current exchange rate is $2/.
a.How many shares can the investor purchase?(Round your answer to the nearest whole number.)
Number of Shares ____________
b.Fill in the table below fordollar-denominated rates of return after one year in each of the nine scenarios (three possible share prices denominated in pounds times three possible exchange rates).(Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign.)
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