Question
Today the spot rate is $1.15 per euro and a U.S. investor buys one million dollars of a European mutual fund at a price of
Today the spot rate is $1.15 per euro and a U.S. investor buys one million dollars of a European mutual fund at a price of 20 per share. One year later the shares have appreciated to 24. What rate of return would he have earned in U.S. dollars if the spot rate at that point is $1 per euro?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
13th edition
1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
