A U.S. investor sold British stocks he bought one year ago. He had invested $5,475 to buy the shares for 30 per share and sold the shares for 37.50 per share. The exchange rate was $/ = 1.8250 at the beginning and $/ = 1.6005 at the end of the period.

i. Compute his return on investment in pound terms

(answer = 25%)

ii. Compute his return on investment in dollar terms

(answer = 9.62%)

iii. How much of the return was due to changes in exchange rates? (answer = -12.30%)

I put the answers to each question, please help me understand how to get them. x