Globalisation and International Investing A US investor wishes to invest in a British firm currently selling for GBP 40 a share. He has $10 000 to invest, and the current exchange is $2/GBP. Required: (a) How many shares can the investor purchase? (2 marks) (b) Given share prices of GBP 35, 40 and 45, and exchange rates of $/GBP 1.80, 2 and 2.20 respectively, calculate the $ and GBP rates of return for each of the nine scenarios (three possible prices per share in GBP times three possible exchange rates. (16 marks) (c) If each of the nine outcomes is equally likely, find the standard deviation of both the GBP and $ denominated rates of return. (16 marks) (d) List and explain the main factors considered in international investing, and suggest ways or approaches in which these factors can be managed or mitigated. (2 marks) (e) List and explain the benefits arising from international investing. What challenges may arise in international investing where the benefits you have described may not materialise