Question
A U.S. investor buys a MXN1,200 stock. The stock returns 20%, and the peso depreciates 8% over the same time period. Assuming an initial exchange
- A U.S. investor buys a MXN1,200 stock. The stock returns 20%, and the peso depreciates 8% over the same time period. Assuming an initial exchange rate of MXN10/$, what is the U.S. investor’s $-denominated percentage rate of return?
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Investments An Introduction
Authors: Herbert B Mayo
9th Edition
324561385, 978-0324561388
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