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Suppose you start with buying a stock in (equivalent to $100) when the exchange rate is 1 = $1.5. One year later, the stock

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Suppose you start with buying a stock in (equivalent to $100) when the exchange rate is 1 = $1.5. One year later, the stock price changes to 75, and you sell it. At the time of the sale, the exchange rate is 1 = $1.6. What is your total percentage return? What percentage of your return is due to the exchange rate? Total return = 0.0%; Exchange rate return = 7.50%. Total return 12.50% ; Exchange rate return = 7.50%. Total return = 20%; Exchange rate return = 0.0%. Total return 12.50%; Exchange rate return = 6.67%. Total return = 20%; Exchange rate return = 6.67%. = Total return 20%; Exchange rate return = 7.50%.

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