Homework Help is Here – Start Your Trial Now!
Business
Finance
Profit Rate of return Rate of return due to exchange rate movement 5.039 87.5% 95%

Profit Rate of return Rate of return due to exchange rate movement 5.039 87.5% 95%

Essentials Of Investments
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
See similar textbooks
icon
Related questions
Question

A 143.

Subject:- finance 

give me the answer for profit, rate of return and rate of return due to exchange rate movement. 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 $105 per euro. You sold the stock for $165 per share and converted the dollar proceeds into euro at the exchange rate of $0.96 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 retum 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 return Rate of return due to exchange rate movement 5.039 87.5 % 95%
Transcribed Image Text:give me the answer for profit, rate of return and rate of return due to exchange rate movement. 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 $105 per euro. You sold the stock for $165 per share and converted the dollar proceeds into euro at the exchange rate of $0.96 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 retum 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 return Rate of return due to exchange rate movement 5.039 87.5 % 95%
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Arbitrage
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS