6) (8 pts) A US Investor with only US dollars buys a UK investment for 200,000 Pounds at the beginning of the year when the exchange rate is $1.245/1 GBP. The US investor sold the investment for 218,000 Pounds at the end of the year and the Pound had strengthend to $1.297/1 GBP and converted the Pounds back into US dollars. a) What is the percentage return on the Pound investment itself (you bought it for 200,000 Pounds and Sold it for 218,000 Pounds)? Return on the asset = 4.18_% Go b) What is the percent appreciation of the Pound over the 1 year period 4, 185 000 218000 End-Beg 9% $1.297 End 13.550 218 000 245 Percent appreciation = 9 _% c) What is the overall total percentage return to the US investor over the 1 year period? 1.297- 1.245 746-249,000 4.18% -18.8821.245 249,000 Overall total return =_15-2 % d) Briefly describe the attractiveness of foreign investments to a US investor when the foreign currency strengthens? US tments in the Cat