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Foreign financial markets 1. A US investor purchased stock in a Canadian company on February 1,2018 for CS77.85. The investor sold the stock on March
Foreign financial markets 1. A US investor purchased stock in a Canadian company on February 1,2018 for CS77.85. The investor sold the stock on March 30 for C$82.15. What is the investor's percentage return on the investment in Canadian dollars 2. If the exchange rate for the Canadian dollar wat 1.2268 on February 1 and 1.2940 on March 30, what is the investor's percentage return on the investment in US dollars? 3. How should an investor whose investment portfolio consists solely of domestic investments expect the risk of the portfolio to change if the investor adds foreign investments to the portfolio? Explain. 4. Name two ways a US investors can include foreign investments in their investment portfolios without the need to buy or sell investments in foreign securities markets
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