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Suppose you have $2,000 to buy shares of the FTSE 100 index in England. At the time of investment, the exchange rate is 0.95/$. Over
Suppose you have $2,000 to buy shares of the FTSE 100 index in England. At the time of investment, the exchange rate is 0.95/$. Over the next year you expect the FTSE 100 to go down ten percent. At the end of the year, you plan to sell this investment and convert the pounds back to dollars at an exchange rate of 0.92/$. What is your expected net dollar rate of return?
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