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Consider a U.S. based investor who purchases German stocks on January 1,2002. One year later, on January 1, 2003 he sells the German stocks. The

Consider a U.S. based investor who purchases German stocks on January 1,2002. One year later, on January 1, 2003 he sells the German stocks. The total return inlocal currency is 10%. The exchange rate on January 1, 2002 is $1.05/euro. The exchangerate on January 1, 2003 is $0.90/euro.Calculate the return in dollar terms.

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