pesos per share. Twelve months later, he sold them at $20\mathrm{.}50$ pesos per share. He received no dividends during that time.

a$.$ What was Joe's investment return $($in percentage terms$)$ for the year, on the basis of the peso value of the shares?

c$.$ Calculate Joe's investment return on the basis of the USS value of the shares.

d$.$ Explain why the two returns are different. Which one is more important to Joe? Why?

a$.$ Joe's investment return $($in percentage terms$)$ for the year, on the basis of the peso value of the shares is $\%.($Round to two decimal places.$)$

b$.$ The purchase price per share in USS is $ $($Round to three decimal places.$)$

The sales price per share in USS is $ $($Round to three decimal places.$)$

c$.$ Joe's investment return on the basis of the USS value of the shares is $\%.($Round to two decimal places.$)$

d$.$ The two returns differ: $($Select the best answer below.$)$

A$.$ due to the risk of the stock.

B$.$ because of the amounts sold.

C$.$ due to the change in exchange rate between the peso and the dollar.

D$.$ because of the timing of the sale.

Which one of the two returns is more important to Joe? Why? $($Select the best answer below$)$

A$.$ The return in part $c$ is more important because Joe is thinking of becoming a US$,$ citizen.

B$.$ The return in part $c$ is more important because as an investor in foreign securities$,$ Joe must carry foreign exchange rate risk.

C$.$ The return in part a is more important because Joe bought the stock in pesos.

D$.$ The return in part a is more important because Joe should only be concerned with carrying stock risk not exchange rate risk.