Microsoft shares for $120 per share; the exchange rate was $1.06 per euro. You sold the stock for $162 p e dollar proceeds into euro at the exchange rate of $0.97 per euro. First, determine the profit from this inv d, compute the rate of return on your investment in euro terms. How much of the return is due to the exch Do not round Intermediate calculations. Enter your answer as a percent rounded to 1 decimal places.) due to exchange rate movement

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
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Suppose you are a euro-based investor who just sold Microsoft shares that you had bought six months ago. You had invested 10,000
euros to buy Microsoft shares for $120 per share; the exchange rate was $1.06 per euro. You sold the stock for $162 per share and
converted the dollar proceeds into euro at the exchange rate of $0.97 per euro. First, determine the profit from this investment in euro
terms. Second, compute the rate of return on your investment in euro terms. How much of the return is due to the exchange rate
movement? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 1 decimal places.)
Profit
Rate of retur
Rate of return due to exchange rate movement
%
%
Transcribed Image Text:Suppose you are a euro-based investor who just sold Microsoft shares that you had bought six months ago. You had invested 10,000 euros to buy Microsoft shares for $120 per share; the exchange rate was $1.06 per euro. You sold the stock for $162 per share and converted the dollar proceeds into euro at the exchange rate of $0.97 per euro. First, determine the profit from this investment in euro terms. Second, compute the rate of return on your investment in euro terms. How much of the return is due to the exchange rate movement? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 1 decimal places.) Profit Rate of retur Rate of return due to exchange rate movement % %
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