Suppose you are a U.S. investor who is planning to invest $295,000 in Japan. You do so at a starting exchange rate of 85.98¥/$. Your Japanese investment gains 8.70 percent, and the ending exchange rate is 84.26¥/$. What is your total return on this investment? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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A: Exchange rate: It is the value of a currency that is exchanged with another currency.

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Q: PLEASE ANSWER CORRECTLY BY GIVING ME THE RIGHT ANSWER  DO NOT GIVE ME THE WRONG ANSWER  ANSWER FULLY

A:

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A:

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A:

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A:

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A:

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Exchange Rate Risk

It is the possibility that the value of a currency will fluctuate in the future. In the wake of globalization, business establishments have increasingly ventured into international markets. The volume of international trade has prospered excellently in the near past and is expected to be more affluent in the future. The use of exchange-traded derivative financial instruments has been multi-folded to provide for the requirements of various MNCs and offshore potential investors. Most banks and financial institutions have helped integrate the global economies. Our Government has introduced some bold and extreme measures to fulfil the purpose behind the fiscal, industrial, and monetary policies. The enactment of GST is a huge step towards streamlining the taxation system of the country. Owing to Covid-19, this aspect of corporate risk management has become critical.