3. Global Funds, a US-based mutual fund company is currently evaluating the recent performance of shares in
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3. Global Funds, a US-based mutual fund company is currently evaluating the recent performance of shares in Berkeley Homes, a publicly traded British homebuilder listed on the FTSE 100. The baseline investment amount used by Global is $1,000,000.
a. What was the return on the security in local currency terms?
b. What was the return on the security in U.S. dollar terms?
c. Does this mean it was a good investment for a local investor, a U.S basedinvestor, or both?
Jan 1st Purchase | Dec 31st Sale | Distributions | |
Share price, euros | 545.00 | 667.60 | 45.00 |
Exchange rate, US$/euro | $1.260 | $1.3450 |
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