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A Swiss investor invests NZ$150,000 in stock X and NZ$450,000 in stock Y. The current spot rate is NZ$0.9624/SF. The portfolio return in domestic term

A Swiss investor invests NZ$150,000 in stock X and NZ$450,000 in stock Y. The current spot rate is NZ$0.9624/SF. The portfolio return in domestic term is State of Return Return Exchange Rate Probability Economy (X) (Y) (SF/NZ$) Boom 0.1 20% 7% 1.1015 Normal 0.5 12% 15% 1.0800 Recession 0.4 -8% 30% 0.9985 A) 18.7491% B) 26.7319% OC) 17.3808% D) 9.9870% E) 14.0165%

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