At the start of the year, you purchased some shares in IBM (a US company) for $US 47.90. The exchange rate at the time of purchase was $US1 = $NZ 1.78. Now the exchange rate is $US1 = $NZ 1.82, while the shares are worth $US 45.43. IBM paid no dividends over the year. What is your ($NZ) holding period return from the start of the year until today? -5.16% 2.25% -3.03% -2.91%
At the start of the year, you purchased some shares in IBM (a US company) for $US 47.90. The exchange rate at the time of purchase was $US1 = $NZ 1.78. Now the exchange rate is $US1 = $NZ 1.82, while the shares are worth $US 45.43. IBM paid no dividends over the year. What is your ($NZ) holding period return from the start of the year until today? -5.16% 2.25% -3.03% -2.91%
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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Question
At the start of the year, you purchased some shares in IBM (a US company) for $US 47.90. The exchange rate at the time of purchase was $US1 = $NZ 1.78. Now the exchange rate is $US1 = $NZ 1.82, while the shares are worth $US 45.43. IBM paid no dividends over the year. What is your ($NZ) holding period return from the start of the year until today?
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-5.16% |
||
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2.25% |
||
|
-3.03% |
||
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-2.91% |
Expert Solution
Step 1
Given:
Purchase price = US $ 47.90
Exchange rate at the time of purchase US1$ = NZ$1.78
Selling price = US $ 45.43
Exchange rate at the time of Sale US1$ = NZ$1.82
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