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You are considering buying one of the two ADRs. Tata motors (an Indian Auto manufacturer) and Honda Motor (a Japanese manufacturer). You expect the companies

You are considering buying one of the two ADRs. Tata motors (an Indian Auto manufacturer) and Honda Motor (a Japanese manufacturer). You expect the companies to grow and their share price to go up by 10% in their domestic market. Assume you want to hold your investment till the end of the year. Use FXFC on Bloomberg and look at the forecasts for JPY and INR. Given these forecast what should be your expected return from the ADRs. Which one should you choose?

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