A Peruvian investor buys 180 shares of a U.S. stock for $7,560 ($42 per share). Over the course of a year, the stock goes up by $3 per share.

(a)	If there is a 10 percent gain in the value of the dollar versus the nuevo sol, what will be the total percentage return to the Peruvian investor?

Return to the Peruvian investor

%

(b)	Now assume that the stock increases by $8, but that the dollar decreases by 10 percent versus the nuevo sol. What will be the total percentage return to the Peruvian investor? Use .90 in place of 1.10 in this case.