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Can I get help with the steps to solve these 3 problems please? 1) You have $10,000 that you are going to invest in Japan
Can I get help with the steps to solve these 3 problems please?
1) You have $10,000 that you are going to invest in Japan for one year. You initially buy ven at 100x/s. Over the year, your investment in Japan earns a 14% return (in yen). At the end of the year, you turn your yen back into dollars at an exchange rate of 105/$. What happened to the value of the yen? What rate of return did you earn on your investment? 2) There is an investment in Germany that requires 50,000. The initial exchange rate is 0.9/s. You will invest there for a year and then exchange your euros for dollars at the end of the year. You expect the exchange rate at the end of the year to be 0.8/$ and your investment to earn 5% in euros. How many dollars will you need? What happened to the value of the euro? What is the expected return to your investment? 3) Using the data from question (2), what is the break-even change in the exchange rate; that is what is the change in the exchange rate such that you end up with as many dollars as you started with Step by Step Solution
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