Question: CHW8: Chapter 19 International Diversification Saved Help Save & Exit Submit Check my work Suppose a U.S. investor wishes to invest in a British firm

 CHW8: Chapter 19 International Diversification Saved Help Save & Exit Submit

CHW8: Chapter 19 International Diversification Saved Help Save & Exit Submit Check my work Suppose a U.S. investor wishes to invest in a British firm currently selling for 40 per share. The investor has $20,000 to invest, and the current exchange rate is $2/. Suppose now the investor also sells forward 10,000 at a forward exchange rate of $1.95/. points Calculate the dollar-denominated returns for each scenario. (Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign.) eBook Rate of Return (%) at Given Exchange Rate $1.80/ $2.00/ $2.20/ Exchange Rate: Price per Share () 33 38 43 Print References

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