1. A French Investor buys AAPL stock at the beginning of the year for $150 dollars. He had Euros but convert to US dollars to buy the stock on the American Exchange. At the time the USD.EUR exchange rate was 0.8 At the end of the year the French Investor liquidated the position for $100/share. There were no dividends paid. At the end of the year the USD.EUR exchange rate was 1.2. The French Investor converted the proceeds back to Euros. What is the investor's total return in percentage form?
1. A French Investor buys AAPL stock at the beginning of the year for $150 dollars. He had Euros but convert to US dollars to buy the stock on the American Exchange. At the time the USD.EUR exchange rate was 0.8 At the end of the year the French Investor liquidated the position for $100/share. There were no dividends paid. At the end of the year the USD.EUR exchange rate was 1.2. The French Investor converted the proceeds back to Euros. What is the investor's total return in percentage form?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:1. A French Investor buys AAPL stock at the beginning of the year for $150 dollars. He had Euros
but convert to US dollars to buy the stock on the American Exchange. At the time the USD.EUR
exchange rate was 0.8 At the end of the year the French Investor liquidated the position for
$100/share. There were no dividends paid. At the end of the year the USD.EUR exchange rate
was 1.2. The French Investor converted the proceeds back to Euros. What is the investor's total
return in percentage form?
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