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You are an American investor who made an investment in a Japanese stock last year at a price of JPY 150,000 when the exchange rate

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You are an American investor who made an investment in a Japanese stock last year at a price of JPY 150,000 when the exchange rate (So) was JPY 89.00/USD. You sold the investment a year later for JPY 145,000 when the exchange rate (S1) was JPY 82.00/USD. If the spot rate when you sold the stock (S1) was JPY 92.00/USD instead of JPY 82.00/USD, your dollar rate of return (Rs) would have increased by 3%. True False Question 2 1 pts For an unhedged American who has invested in Japanese stock, a favorable movement in the exchange rate is for the Japanese Yen to appreciate in value over the life of the investment True False

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