As a US investor, you have decided to diversify your portfolio by including stocks of UK companies in your portfolio. You are considering investing in British Petroleum or UK Gas and Oil. British Petroleum’s ADRs are traded on the NYSE, while UK Gas and Oil is traded on the London Stock Exchange. BP is currently priced at $42.50. You expect to sell it next year for $47.00. UKGO is currently priced at £84.25. You expect to sell it next year at £94.00. The current exchange rate is $1.6250/£. You expect the exchange rate next year to be $1.5500/£.

Based on this, which investment should you choose? Why?

Answer rating: 100% (QA)

Heres an analysis to help you decide which investment to choose British Petroleum BP Current price42... View the full answer