Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A U.S. investor has $20,000. This is used to buy a stock in Sweden that costs 100 Swedish krona per share. At this time the
A U.S. investor has $20,000. This is used to buy a stock in Sweden that costs 100 Swedish krona per share. At this time the exchange rate is $0.11 = 1 Swedish krona.
One year later the stock can be sold for 105 Swedish krona per share. The investor sells the stock and converts the krona back to dollars. If the return to the U.S. investor (measured in dollars) was -14.1%, what was the exchange rate?
$7.447 = 1 Swedish krona | ||
$0.06 = 1 Swedish krona | ||
$0.12551 = 1 Swedish krona | ||
$0.14 = 1 Swedish krona | ||
$0.12 = 1 Swedish krona | ||
$0.09 = 1 Swedish krona |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started