Suppose a U$.$S$.$ investor bought $100$ shares of Toyota Corporation in

year $2001.$ At that time each share of Toyota Corporation cost $10,000$ yen, and

the prevailing spot exchange rate was $120/$$$.$ Suppose one year later, the

price of Toyota Corporation increased to $11,000$ yen share.

a$)(1$pt$)$ Compute the investor$$s one year net return $($in percentage$)$ from this investment

in terms of $$

b$)(1\mathrm{.}5$pt$)$ if the spot exchange rate one year later was $110/$$$,$ compute the investor$$s net

return $($in percentage$)$ in terms of dollar

c$)(1$pt$)$ if the spot exchange rate one year later was instead $140/$$$,$ repeat the

computation in b$)$

d$)(1\mathrm{.}5$pt$)$ what do you learn from the computation a$)$c$)?$