Question: In the previous problem, what would the total return be if the ending exchange rate were 88.65/$? What does your answer tell you about the

In the previous problem, what would the total return be if the ending exchange rate were 88.65¥/$? What does your answer tell you about the importance of currency fluctuations?

In the previous problem

Suppose you are a U.S. investor who is planning to invest $125,000 in Japan. You do so at a starting exchange rate of 84.28¥/$. Your Japanese investment gains 7 percent, and the ending exchange rate is 82.56¥/$. What is your total return on this investment?

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