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Question 3 1 pts Use the following information to answer questions 3 and 4 AUK investor invested Pounds 1 million in shares of a U.S.

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Question 3 1 pts Use the following information to answer questions 3 and 4 AUK investor invested Pounds 1 million in shares of a U.S. firm, Caterpillar, on January 1, 2004 The price per Caterpillar share at that time was USD 75 and the exchange rate at that time was $2.0 per Pound on January 1, 2005, the price per Caterpillar share was USD 50 and the exchange rate was $15 per Pound 3. What is the rate of return in Pound terms for the UK investor for this 1 year period? - 11 11 -50% -33% 12.556 -12.5% D Question 4 1 pts Use the following information to answer questions 3 and 4 AUK investor invested Pounds 1 million in shares of a US firm, Caterpillar, on January 1, 2004 The price per Caterpillar share at that time was USD 75 and the exchange rate at that time was $2.0 per Pound on January 1, 2005, the price per Caterpillar share was USD 50 and the exchange rate was $1.5 per Pound. 4. What was the contribution of exchange rate movement to the rate of return in Pound terms? 33% -25% 2596 -33%

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