An American investor buys 100 shares of EuroCorp. The stock sells for 10 euros and the euro

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An American investor buys 100 shares of EuroCorp. The stock sells for 10 euros and the euro is worth $1.09. The investor sells the stock for 13 euros when the euro is worth $0.97.

a) What is the percentage return to the American investor?

b) What is the percentage return on the investment to an individual located in France?

c) Why are the returns different?

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Investments An Introduction

ISBN: 978-0324561388

9th Edition

Authors: Herbert B Mayo

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Question Posted: Jun 26, 2012 07:13 AM

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An American investor buys 100 shares of EuroCorp. The stock sells for 10 euros and the euro

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a The cost of the stock in dollars 100 shares x 10 euros x 109 cost of the euro 1090 The sale ...View the full answer

Investments An Introduction

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