The present exchange rates CS - U.S. 50.78. The 1 year future rate is CS - US $0.76. The yield on al- year U.S. bill is 6%. A yield of on a 1-year Canadian bill will make investor indifferent hetween investing in the US hill and the Canadian bill. II You are a U.S. investor who purchased British securities for 2,000 pounds one year ago when the British pound cost $1.50. No dividends were paid on the British securities in the past year. Your total return based on U.S. dollars was if the value of the securities is now 2.600 pounds and the pound is worth $1.60 Return Calculation: Suppose a particular investment carns an arithmetic return of 10% in year 1.50 in year and -30% in year 3. The geometrie average return for the year period will be Suppose you buy 1000 shares of Abolishing Dividend Corporation at the beginning of year 1 for $80 Abolishing Dividend Corporation pays ne dividends. The stock price at the end of year is 5100, 5120 at the end of year 2. S150 at the end of year 3 and 190 at the end of year 4. The stock price declines to $130 at the end of years, and you sell your 100 shares. For the five years, your geometric average return The present exchange rates CS - U.S. 50.78. The 1 year future rate is CS - US $0.76. The yield on al- year U.S. bill is 6%. A yield of on a 1-year Canadian bill will make investor indifferent hetween investing in the US hill and the Canadian bill. II You are a U.S. investor who purchased British securities for 2,000 pounds one year ago when the British pound cost $1.50. No dividends were paid on the British securities in the past year. Your total return based on U.S. dollars was if the value of the securities is now 2.600 pounds and the pound is worth $1.60 Return Calculation: Suppose a particular investment carns an arithmetic return of 10% in year 1.50 in year and -30% in year 3. The geometrie average return for the year period will be Suppose you buy 1000 shares of Abolishing Dividend Corporation at the beginning of year 1 for $80 Abolishing Dividend Corporation pays ne dividends. The stock price at the end of year is 5100, 5120 at the end of year 2. S150 at the end of year 3 and 190 at the end of year 4. The stock price declines to $130 at the end of years, and you sell your 100 shares. For the five years, your geometric average return