Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[LO21-2] An investor in the United States bought a one-year Brazilian security valued at 200,000 Brazilian reals (R$). The U.S. dollar equivalent was $150,000. The

image text in transcribed
[LO21-2] An investor in the United States bought a one-year Brazilian security valued at 200,000 Brazilian reals (R\$). The U.S. dollar equivalent was $150,000. The Brazilian security earned 20 percent during the year, but the Brazilian real depreciated 5 cents against the U.S. dollar during the time period ($0.75 to $0.70 ). After transferring the funds back to the United States, what was the investor's return on her $150,000 ? Note: Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Behavioral Finance

Authors: Edwin Burton, Sunit N. Shah

1st Edition

111830019X, 978-1118300190

More Books

Students also viewed these Finance questions

Question

Question 1 (a2) What is the reaction force Dx in [N]?

Answered: 1 week ago