Suppose you start with $100 and buy stock for 50 when the exchange rate is 1 = $2. One year later, the stock rises to 60. You are happy with your 20 percent return on the stock, but when you sell the stock and exchange your 60 for dollars, you find that the pound has fallen to 1 = $1.75. What is your return to your initial investment of $100? (Answer: 5%)