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Suppose you are an investor in the U.S. who just sold LOral shares that you had bought six months ago. You had invested $14,400 to
Suppose you are an investor in the U.S. who just sold LOral shares that you had bought six months ago. You had invested $14,400 to buy LOral shares for 100 per share; the exchange rate was $1.44 per euro. You sold the stock for 120 per share and converted the euro proceeds into dollar at the exchange rate of $1.2 per euro.
(a) (5 points) Compute the rate of return on your investment in euro terms.
(Hint: Return on foreign (): )
(b) (5 points) Compute the rate of return on your investment in dollar terms ().
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