Question
An American investor buys 800 shares of London Enterprises at a price of 46 when the exchange rate is GBP/USD = 2. A year later,
An American investor buys 800 shares of London Enterprises at a price of 46 when the exchange rate is GBP/USD = 2. A year later, the shares are selling at 48. No dividends have been paid.
What is the rate of return to an American investor if the exchange rate is still GBP/USD = 2? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
What is the rate of return to an American investor if the exchange rate is GBP/USD = 2.18? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
What is the rate of return to an American investor if the exchange rate is GBP/USD = 1.84? Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
6th edition
1305968352, 978-1337635653, 978-1305968356
