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Suppose you are a euro - based investor who just sold Microsoft shares that you had bought six months ago. You had invested 1 0
Suppose you are a eurobased investor who just sold Microsoft
shares that you had bought six months ago. You had invested
euros to buy Microsoft shares for $ per share; the exchange rate
was $ per euro. You sold the stock for $ per share and
converted the dollar proceeds into euro at the exchange rate of
$ per euro. First, determine the profit from this investment in
euro terms. Second, compute the rate of return on your investment
in euro terms. How much of the return is due to the exchange rate
movement?Do not round intermediate calculations.
Enter your answer as a percent rounded to decimal
places.
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