FREE Trial

You are a U.S. investor who purchased British securities for 2,000 one year ago when the British pound cost U.S.

Question:

You are a U.S. investor who purchased British securities for £2,000 one year ago when the British pound cost U.S. $1.50. What is your total return (based on U.S. dollars) if the value of the securities is now £2,400 and the pound is worth $1.75? No dividends or interest were paid during this period.


This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Answer rating: 33% (3 reviews)

British securities purchased by US investor one year ago when 1 poun…View the full answer


answer-question
Answered By
tutor-profile-image
ANMOL AGRAWAL
I have completed my Bachelor of Commerce in Majority with Accountancy and Finance. I always have taught my peers and students as well Accountancy/Finance and Taxation subjects. From the very learning stage, my peers used to study from me and they appreciated my teaching very well. I have also taught Chartered Accountancy (CA) students (Finance and Taxation subjects).
0.00 0 Reviews 10+ Question Solved
Related Book For  answer-question
Investments

Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

See More Books
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: January 04, 2013 08:06:30
See More Questions

Students also viewed these Accounting questions

Q:
You are a Canadian investor who purchased British securities for 2,000 one year ago when the British pound cost C$ 1.50. What is your total return (based on Canadian dollars) if the value of the...
A:
Initial investment 2......
Q:
Tris Speaker bought a Japanese stock one year ago when it sold for 280 yen per share and the exchange rate was $0,008 per yen. The stock now sells for 350 yen and the exchange rate is $0,010 per yen....
A:
The return on an investment in this Japanese stock to a Japanese investor is simply th......
Q:
If a British investor who purchased French securities anticipates that the value of the euro may fall but does not wish to sell the securities, what should this investor do?
A:
The British investor seeks to protect him or herself against deteriorat......
Q:
Find the coordinates of the vertices and the foci of the given hyperbolas. Sketch each curve. 9y 2 16x 2 = 9
A:
We can rewrite the given hyperbola as 9y 2 9 16x 2 9 1 Dividing both......
Q:
Tanker B is traveling at a speed of 22 mi/h from St. Petersburg, Florida, to New Orleans, Louisiana, on a bearing of 285. The distance between the two ports is 510 mi. a. Make a sketch of the...
A:
a b c 492 6 mi west 132 0 mi north Create a right triangle to find the horizontal and vertical posi......
Q:
Figure P35.4 shows an apparatus used to measure the speed distribution of gas molecules. It consists of two slotted rotating disks separated by a distance d, with the slots displaced by the angle &....
A:
a b For the light beam to make it through both slots the time for the li......
Q:
You have two solutions, one 1.50 M sodium sulfide and the other 1.00 M Pb(NO 3 ) 2 . (a) Write a net ionic equation for the precipitation reaction that occurs when these solutions are combined. (b)...
A:
Click to View...
Q:
The information in Table is available for a large fund raising project. a. Determine the critical path and the expected completion time of the project. b. Plot the total project cost, starting from...
A:
a AON diagram for the fund raising project Activity slacks for the project The critical path is BDFK......
Q:
Mary gets $100 on the first day of every month. Peter, on the other hand, obtains $100 on the last day of every month. Both Mary and Peter will get this amount of money for five years. Suppose the...
A:
To calculate the present value of the cash flows for both Mary and Peter we can use the formula for......
Q:
Under fair-value accounting for an equity investment. which of the following affects the income the investor recognizes from its ownership of the investee? a. The investee's reported income adjusted...
A:
The answer to this question is b Changes in the fair value of the investor s ownership......
Q:
Much of this chapter was written from the perspective of a U.S. investor. But suppose you are advising an investor living in a small country (choose one to be concrete). How might the lessons of this...
A:
A nave investment by an investor who resides in Foreign Country A might include only a small......
Q:
The correlation coefficient between the returns on a broad index of U.S. stocks and the returns on indexes of the stocks of other industrialized countries is mostly _______, and the correlation...
A:
The correlation coefficient between the returns on U S......
Q:
A bicycle is moving at a speed of 15 m/s when the rider applies her brakes. The bicycle comes to a stop after moving forward another 20 m. Estimate the force of one of the bicycle brake pads on the...
A:
Apply the concepts of center of mass rotational equilibrium and translational equilibrium See Figure......
Q:
How do metal atoms usually attain an octet in chemical reactions?
A:
Metal atoms typically attain an octet in chemical reactions by losing electrons resulting in the for......
Q:
Suppose you are asked by the U.S. Forest Service to run viewshed analysis along a scenic highway. You have chosen a number of points along the highway as viewpoints. You want to limit the view to...
A:
To perform a viewshed analysis along a scenic highway you will need to use a Geographic Information System GIS software or a specialized viewshed anal......
Q:
Briefly describe the ethical dilemmas that can face people doing program evaluation research.
A:
Program evaluation research involves assessing the effectiveness and impact of various programs policies or interventions Like any research it can pre......
Q:
For two phasors = 8540 and B = 70050, find (i) A + B, (ii) A B, (iii) A B, and (iv) A/B. Express each result in -form and also in -form.
A:
To perform the operations on the given phasors we need to use complex number notation Let s convert......
Q:
Consider the following process (e represents an electron): (a) Give the full symbol for the starting atom. (b) Give the full symbol for the resulting ion. (c) Is the product a cation or an anion?...
A:
Click to View...
Q:
In Exercises 3952, a. Find an equation for f -1 (x). b. Graph f and f -1 in the same rectangular coordinate system. c. Use interval notation to give the domain and the range of f and f -1 . f(x) = x...
A:
a b c f x......
Q:
Calculate the electrical conductivity of a fiber-reinforced polyethylene part that is reinforced with 20 vol % of continuous, aligned nickel fibers.
A:
Since Silicon is an Indirect Band Gap semiconductor so electron cannot fall directly to......
Q:
a. MF Corp. has an ROE of 16% and a plowback ratio of 50%. If the coming years earnings are expected to be $2 per share, at what price will the stock sell? The market capitalization rate is 12%. b....
A:
a g ROE b 16 0 5 8......
Q:
a. MF Corp. has an ROE of 16% and a plowback ratio of 50%. If the coming years earnings are expected to be $2 per share, at what price will the stock sell? The market capitalization rate is 12%. b....
A:
a g ROE b 16 0 5 8......
Q:
The market consensus is that Analog Electronic Corporation has an ROE 5 9%, has a beta of 1.25, and plans to maintain indefinitely its traditional plowback ratio of 2/3. This years earnings were $3...
A:
a b Leading P 0 E 1 10 60 3 18 3 33 Trailing P 0 E......
Finance For Engineers Evaluation And Funding Of Capital Projects 1st Edition - ISBN: 1849967083 - Free Book