An investor in the United States bought a one-year Brazilian security valued at 250,000 Brazilian reals (R$). The U.S. dollar equivalent was $200,000. The Brazilian security earned 20 percent during the year, but the Brazilian real depreciated 5 cents against the U.S. dollar during the time period ($0.80 to $0.75). After transferring the funds back to the United States, what was the investor's return on her $200,000? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Investor's rate of return in U.S. terms %

An investor in the United States bought a one-year Brazilian security valued at 250,000 Brazilian reals (R$). The U.S. dollar equivalent was $200,000. The Brazilian security earned 20 percent during the year, but the Brazilian real depreciated 5 cents against the U.S. dollar during the time period ($0.80 to $0.75). After transferring the funds back to the United States, what was the investor's return on her $200,000? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Investor's rate of return in U.S. terms %

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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