Mr. James K. Silber, an avid international investor, just sold a share of Néstle, a Swiss firm, for SF5,120. The share was bought for SF4,640 a year ago. The exchange rate is SF1.80 per U.S. dollar now and was SF1.86 per dollar a year ago. Mr. Silber received SF128 as a cash dividend immediately before the share was sold. Suppose that Mr. Silber sold SF4,640, his principal investment amount, forward at the forward exchange rate of SF1.82 per dollar. How would this affect the dollar rate of return on this Swiss stock investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Rate of return %

Mr. James K. Silber, an avid international investor, just sold a share of Néstle, a Swiss firm, for SF5,120. The share was bought for SF4,640 a year ago. The exchange rate is SF1.80 per U.S. dollar now and was SF1.86 per dollar a year ago. Mr. Silber received SF128 as a cash dividend immediately before the share was sold. Suppose that Mr. Silber sold SF4,640, his principal investment amount, forward at the forward exchange rate of SF1.82 per dollar. How would this affect the dollar rate of return on this Swiss stock investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Rate of return %

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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Mr. James K. Silber, an avid international investor, just sold a share of Nestlé, a Sw iss firm, for SF5,080. The share was boug ht for SF4,600 a year ago. The exchange rate is SF1.60 per U.S. dollar now and wa s SF1.78 per dollar a year ago. Mr. Silber received SF120 as a cash dividend immed iately before the share was sold. Comput e the rate of return on this investment in terms of U.S. dollars.
Use the following information to answer questions 26 to 28 Michael is an investor based in New York He holds 100 shares of Bescherelle, a French firm that went public in March 2015. He bought the shares at €18 per share. At that time, the dollar euro exchange rate was $1.360/€. Now, the share is trading at €25 and the dollar euro exchange rate is $1.410/€. 26. If Michael sells his shares today, what percentage change in the share price would he receive? A. 55.43% B. 40.11% C. 38.89% D. 23.34% E. 15.30% 27. Over this period, by how much has the Euro appreciated/depreciated against the dollar? A. Appreciated by 3.68% B. Depreciated by 3.68% C. Devalued by 3.68% D. Appreciated by 3.54% E. Depreciated by 3.54%
At the start of the year, you purchased some shares in IBM (a US company) for $US 25.44. The exchange rate at the time of purchase was $US1 = $NZ 1.86. Now the exchange rate is $US1 = $NZ 1.72, while the shares are worth $US 27.91. IBM paid no dividends over the year. What is your ($NZ) holding period return from the start of the year until today? 9.71% 2.18% 1.45% -7.53%
9 years ago Mary purchased shares in a certain mutual fund at Net Asset Value (NAV) of $96. She reinvested her dividends into the fund, and today she has 7.7% more shares than when she started. If the fund's NAV has increased by 39.5% since her purchase, compute the rate of return on her investment if she sells her shares today. Round your answer to the nearest tenth of a percent.
Your eccentric Aunt Claudia has left you $50,000 in BP shares plus $50,000 cash. Unfortunately, her will requires that the BP stock not be sold for one year and the $50,000 cash must be entirely invested in one of the stocks shown below. Toronto Dominion Bank BHP Billiton Siemens Nestlé LVMH Toronto Dominion Bank Samsung BP Standard deviation (%) BHP Billiton 1.00 BHP Siemens Nestlé LVMH Toronto Dominion Bank Samsung BP 28.60 Portfolio Variance Siemens 0.39 1.00 25.40 Nestlé -0.05 0.29 1.00 9.24 LVMH 0.42 0.14 0.04 1.00 20.20 0.60 0.16 0.05 0.38 1.00 11.70 Samsung 0.52 0.36 -0.03 0.56 0.20 1.00 30.50 BP 0.49 -0.07 0.05 0.06 a. Calculate the portfolio variance for seven different portfolios. (Use decimals, not percents, in your calculations. Do not round intermediate calculations. Enter your answers as a decimal rounded to 5 places.) 0.35 0.36 1.00 19.80
A French Investor buys 250 shares of Teck for $18,750 ($75 per share). Over the course of a year, Teck goes up by $8.65. a. If there is a 10 percent gain in the value of the dollar versus the euro, what will be the total percentage return to the French Investor? (Do not round Intermediate calculations. Round the final answer to 2 decimal places.) Total percentage return 1% b. Now assume the stock Increases by $10 but the dollar decreases by 10 percent versus the euro. What will be the total percentage return to the French Investor? (Round your final answer to the nearest whole percentage.) Total percentage return
8) On July 1, 2022, Chester Aguilar acquires 1,000 shares of a foreign company at 10 Foreign Currency units (FC, hereafter) per share. He acquired the funds for this purchase when FC1- $1.48, a value that did not change prior to the date on which he purchased the shares. He sells the 1,000 shares December 1, 2022 for FC12 per share. On this date the exchange rate is FC1- $1.46. What is the effect of the sale transaction on Chester's net income for 20227 A) $2,520 B) $2,720 C) $1,360 D) $1,160
Required: Mr. James K. Silber, an avid international investor, just sold a share of Néstle, a Swiss firm, for SF5,250. The share was bought for SF4,680 a year ago. The exchange rate is SF2.00 per U.S. dollar now and was SF1.94 per dollar a year ago. Mr. Silber received SF136 as a cash dividend immediately before the share was sold. Suppose that Mr. Silber sold SF4,680, his principal investment amount, forward at the forward exchange rate of SF2.02 per dollar. How would this affect the dollar rate of return on this Swiss stock investment? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Rate of return %
You invested three thousand US dollars and purchased shares of a German corporation when the exchange rate was US1.00 = 0.70 Euros. After six months, you sold all of the shares for 3,100 euros when the exchange rate was US1.00 = 0.68 euros. No dividends were paid during the time you owned the shares of stock. What is the amount of gain or loss on this investment in US dollars? Group of answer choices $2,458.82 $892.00 Loss $1,000.00 $273.11 none of the given answers is correct
On the advice of your uncle, you purchased 10 shares of a well-established U.S.-based corporate stock for $21 per share. After 1 quarter, you received $0.25 per share dividends each quarter for 2 years. At that point, the stock price had gone down in a short-term recession, so you purchased 10 more shares at $18 per share. The stock continued to pay 25¢ a share on all 20 shares. After 3 years (12 quarters), you decided to sell the stock since it had increased in market value to $24 per share. Make the following assumptions: (a) no commissions for the purchase or sale of the stock, (b) no government taxes on the dividends, and (c) quarterly compounding of the rate of return. What is the effective interest rate per year?
Required: Mr. James K. Silber, an avid international investor, just sold a share of Néstle, a Swiss firm, for SF5,150. The share was bought for SF4,670 a year ago. The exchange rate is SF1.95 per U.S. dollar now and was SF1.92 per dollar a year ago. Mr. Silber received SF134 as a cash dividend immediately before the share was sold. Suppose that Mr. Silber sold SF4,670, his principal investment amount, forward at the forward exchange rate of SF1.97 per dollar. How would this affect the dollar rate of return on this Swiss stock investment? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Rate of return %

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