Suppose you are a euro - based investor who just sold Microsoft shares that you had bought
Fantastic news! We've Found the answer you've been seeking!
Question:
Suppose you are a eurobased investor who just sold Microsoft shares that you had bought six months ago. You had invested euros to buy Microsoft shares for $ per share; the exchange rate was $ per euro. You sold the stock for $ per share and converted the dollar proceeds into euro at the exchange rate of $ 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 return is due to the exchange rate movement?
Posted Date: