Question: A U.S. portfolio manager invests $1,000,000 in U.K. for a year and earns 17% on the investment while the spot rate moves from USD1.5000/GBP to
A U.S. portfolio manager invests $1,000,000 in U.K. for a year and earns 17% on the investment while the spot rate moves from USD1.5000/GBP to USD1.5645/GBP. What is her total return?
| 18.90% | ||
| 15.50% | ||
| 4.88% | ||
| 22.03% | ||
| 14.73% |
The custodial bank (located in the home country of the issuer) of an American Depository Receipt
| Performs trading in the U.S. on behalf of the ADR holders | ||
| Holds foreign shares on deposit | ||
| Acts as a broker between U.S. investors and the foreign firm | ||
| Performs trading outside the U.S. on behalf of the ADR holders | ||
| Buys and sells the foreign shares based upon their inside information | ||
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Which one of the following statements is FALSE about billing of lading?
| An ordered bill of lading is used when the importer buys on credit | ||
| The exporter receives a bill of lading from the shipping company upon shipping the order | ||
| A bill of lading guarantees that the importer will not default on payment | ||
| A straight bill of lading is used when the importer makes a cash payment | ||
| A bill of lading serves as a contract that the exporter has shipped goods to specifications |
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