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A Canadian investor buys shares in DaimierChrysler on the New York Exchange when the stock's price and the exchange rate were US$40 and US$0.70/C$ respectively.

A Canadian investor buys shares in DaimierChrysler on the New York Exchange when the stock's price and the exchange rate were US$40 and US$0.70/C$ respectively. One year later the investor sells the shares for US$41 and the exchange rate is US$0.80/C$. Calculate the investor's annual percentage rate of return in Canadian dollars. (Show reasons, calculations to support your answer).

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