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One year ago, you invested $30,000 to buy Honda Motors shares on the Tokyo Stock Exchange for 3261 per share. S ($/) was $0.0088/. Today,
One year ago, you invested $30,000 to buy Honda Motors shares on the Tokyo Stock Exchange for 3261 per share. S (\$/) was $0.0088/. Today, you sold the stock for 3331 per share and converted the yen proceeds into US $ at S($/ ) of $0.0071/. You received 180 per share as a cash dividend immediately before you sold the stock. (1) Compute the rate of return on investment in dollar terms. (5 points) (2) How much of the return is due to the exchange rate movement? (7 points) (3) Determine the profit (loss) from this investment in dollar terms. (3 points)
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