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A US investor purchased the Nikkei index during the period when the index gained 15.5% while the exchange rate Y/$ rose from 102.5 to 114.25.

A US investor purchased the Nikkei index during the period when the index gained 15.5% while the exchange rate Y/$ rose from 102.5 to 114.25. What was the effective return in dollars to the US investor during the period? How much of the return was due changes in exchange rates?

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ANS: The dollar appreciated by 11.46% / The yen depreciated by 10.28%

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