One year ago you converted 1000 to yen at the rate of 125, Ask an Expert

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One year ago you converted $1,000 to yen at the rate of 125 yen to $1 and invested in Japanese securities. You just sold the securities for 137,500 yen. The current exchange rate is 111 yen to $1. What is the rate of return you earned on the Japanese securities before converting to dollars? What is the rate of return in U.S. dollars? Explain why there is a difference.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92285812

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