You invested $100,000 in British equities. The stock's price was £50 and the exchange rate was £0.50/$1.00. At selling time, one year after purchase, they were £45 and £0.60/$1.00.

Assume the investor sold £50,000 forward at the forward exchange rate of £0.56/$1.00. What is the rate of return in dollars?

Answer rating: 100% (QA)

Total investments in will be 100000 x 05 50000 Number of shares bought will be 50000 50 ... View the full answer