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Answer a,b,c,d A US investor chose to invest in Mumbai sensex for a period of one year with a view to earn a nominal return
Answer a,b,c,d
A US investor chose to invest in Mumbai sensex for a period of one year with a view to earn a nominal return of 19% on the investment. The relevant information is given below. Size of the investment 85000000 Spot rate 1 year ago R$ 46.50/58 Spot rate now Rs/$13.50 / 55 Sensex one year ago 5855 Sensex now 6087 Inflation in U.S. Inflation in India You are required to a. Compute the nominal return to the US investor b. Real return for the US investor. 2% s c. Nominal return for the Indian investor. d. Compute the real return to an Indian investor in Sensex. A US investor chose to invest in Mumbai sensex for a period of one year with a view to earn a nominal return of 19% on the investment. The relevant information is given below. Size of the investment 85000000 Spot rate 1 year ago R$ 46.50/58 Spot rate now Rs/$13.50 / 55 Sensex one year ago 5855 Sensex now 6087 Inflation in U.S. Inflation in India You are required to a. Compute the nominal return to the US investor b. Real return for the US investor. 2% s c. Nominal return for the Indian investor. d. Compute the real return to an Indian investor in SensexStep by Step Solution
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