Question: not sure why i am getting this wrong. 11.87 and 11.88 are not correct. please help Required: Mr. James K. Silber, an avid international investor,

not sure why i am getting this wrong. 11.87 and 11.88 are not correct. please help not sure why i am getting this wrong. 11.87 and 11.88 are

Required: Mr. James K. Silber, an avid international investor, just sold a share of Nestle, a Swiss firm, for SF5,350. The share was bought for SF4,690 a year ago. The exchange rate is SF2.05 per U.S. dollar now and was SF1,96 per dollar a year ago. Mr. Silber received SF138 as a cash dividend immediately before the share was sold. Suppose that Mr. Silber sold SF4,690, his principal investrment amount. forward at the forward exchange rate of SF2.07 per dollar. How would this affect the dollar rate of return on this Swiss stock investment? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!