Question
Mr. James K. Silber, an avid international investor, just sold a share of Nstle, a Swiss firm, for SF6,050. The share was bought for SF4,760
Mr. James K. Silber, an avid international investor, just sold a share of Nstle, a Swiss firm, for SF6,050. The share was bought for SF4,760 a year ago. The exchange rate is SF2.40 per U.S. dollar now and was SF2.10 per dollar a year ago. Mr. Silber received SF152 as a cash dividend immediately before the share was sold. Suppose that Mr. Silber sold SF4,760, his principal investment amount, forward at the forward exchange rate of SF2.42 per dollar. How would this affect the dollar rate of return on this Swiss stock investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Mr. James K. Silber, an avid international investor, just sold a share of Nestl, a Swiss firm, for SF4,930. The share was bought for SF3,100 a year ago. The exchange rate is SF1.60 per U.S. dollar now and was SF2.08 per dollar a year ago. Mr. Silber received SF270.00 as a cash dividend immediately before the share was sold. Compute the rate of return on this investment in terms of U.S. dollars. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
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