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An investor believes that the U.S. dollar will rise in value relative to the Japanese yen. The same investor is considering two investments with identical
An investor believes that the U.S. dollar will rise in value relative to the Japanese yen. The same investor is considering two investments with identical risk and return characteristics. One stock is trading in yen in Japan and the other stock is a stock trading in dollars in the United States. Should the investor purchase the Japanese stock? (Select the best answer below.) O A. No. If the value of the dollar goes up, then the investor will receive fewer dollars for the yen received from the sale of the investment. Therefore, the investor should purchase the U.S. dollar investment. B. Yes. If the value of the dollar goes up, then the investor will receive more dollars for the yen received from the sale of the investment. Therefore, the investor should purchase the yen investment. C. Yes. If the value of the dollar goes up, then the investor will receive fewer dollars for the yen received from the sale of the investment. Therefore, the investor should purchase the yen investment. D. No. If the value of the dollar goes up, then the investor will receive more dollars for the yen received from the sale of the investment. Therefore, the investor should purchase the U.S. dollar investment. An investor recently sold some stock in a European company that was worth 28,000 euros. The US$/euro exchange rate is currently 1.315, meaning that 1 euro buys 1.315 dollars. How many U.S. dollars will the investor receive? The investor will receive $ (Round to the nearest dollar.)
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