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You are a German investor and have invested in securities in the Japanese market. Last year, you bought a share of Honda Motor Company on
You are a German investor and have invested in securities in the Japanese market. Last year, you bought a share of Honda Motor Company on the Tokyo Stock Exchange for Y8500. Recently, you received a dividend of Y250, after which you sold the stock for Y9500. During the year, the exchange rate changed from 0.0091/Y to 0.0083/Y. Compute the return on the Honda stock that you made (as a German investor), and the return that you would have made if you had invested in the Yen, but not in the stock.
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