In September 2009 a U.S. investor chooses to invest $500,000 in German equity securities at a then current spot rate of $1.25/euro. At the end of one year the spot rate is$1.20/euro. Problem 40 Refer to the information in Case

1. At the end of the year the investor sells his stock that now has an average price per share of e55. What is the investorís average rate of return before converting the stock back into dollars?

2. att the end of the year the investor sells his stock that now has an average price per share of e55. What is the investorís average rate of return after converting the stock back intodollars?