A Canadian equity mutual fund buys 1 million shares of a denominated common stock for a holding period of 6 months. The relevant information for this investment is as follows:

Current price per share = 50

Expected price per share after 6 months = 52

Expected dividends per share at the end of 6 months = 1.2

Current exchange rate between and C$ = C$1.8 per

The expected exchange rate between and C$ after 6 months = C$1.82 per

a. Calculate the expected rate of return on the investment.

b. Calculate the effect of the expected rate of appreciation or depreciation of against C$ on the expected rate of return of the investment.