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Suppose a U.S. investor wishes to invest in a British firm currently selling for 60 per share. The investor has $6.000 to invest, and the
Suppose a U.S. investor wishes to invest in a British firm currently selling for 60 per share. The investor has $6.000 to invest, and the current exchange rate is $24. a. How many shares can the investor purchase? (Round your answer to the nearest whole number.) Number of shares b. Fill in the table below for dollar-denominated rates of return after one year in each of the nine scenarios (three possible share prices denominated in pounds times three possible exchange rates). (Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "o" wherever required. Negative amounts should be Indicated by a minus slgn.) Price per Share (8) 54 Pound-Denominated Return (%) % Dollar-Denominated Return (%) for Year-End Exchange Rate $1.60/E $2.00/ $2.40/ % %% 59 % % %% %6 84 %%
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