Question
A Peruvian investor buys 150 shares of a U.S. stock for $7,500 ($50 per share). Over the course of a year, the stock goes up
A Peruvian investor buys 150 shares of a U.S. stock for $7,500 ($50 per share). Over the course of a year, the stock goes up by $4 per share. a) if there is 10% gain in the value of the dollar vs the Peruvian nuevo sol, what will be the total percentage return to the peruvian investor? first deterime the new dollar value of the investment and multiply this figure by 1.10. divide this answer by $7500 and get a percentge value and then subtract 100% to get the perccentage return . B) instead assume that the stock increases by $7 but that the dollar decreases by 10% vs the nuevo sol. what will be the total % return to the peruvian investor? use 0.90 in place of 1.10 in this case
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