2. Consider the following returns: Period United States United Kingdom Exchange Ratea 1 10% 5% $3 2 15% -5% 2.5 3 -5% 15% 2.5 4 12% 8% 2.0 5 6% 10% 1.5 6 2.5 What is the average return in each market from the point of view of a U.S. investor and of a U.K. investor?
2. Consider the following returns: Period United States United Kingdom Exchange Ratea 1 10% 5% $3 2 15% -5% 2.5 3 -5% 15% 2.5 4 12% 8% 2.0 5 6% 10% 1.5 6 2.5 What is the average return in each market from the point of view of a U.S. investor and of a U.K. investor?
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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2. Consider the following returns:
Period United States United Kingdom Exchange Ratea
1 | 10% | 5% | $3 |
2 | 15% | -5% | 2.5 |
3 | -5% | 15% | 2.5 |
4 | 12% | 8% | 2.0 |
5 | 6% | 10% | 1.5 |
6 |
|
| 2.5 |
What is the average return in each market from the point of view of a U.S. investor and of a U.K. investor?
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