A U.S. dollar-based investor buys shares in an exchange-traded fund in local currency on January 12 that replicates the Bovespa (the Brazilian stock market). The Bovespa is trading at 48,164 and the exchange rate is 2.66 reals per dollar. The investor closes out the trade a year later. At that time the Bovespa is trading at 51,000 and the exchange rate is 1.80 reals per dollar.

b) How did the investor make money, if any, on this trade? Was it through stock market appreciation? Currency appreciation? Both?