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Question: A Peruvian investor buys 160 shares of a U.S. stock for $6, 720 ($42 per share). Over the course of a year, the stock goes up by $4 per share.

a. If there is a 10 percent gain in the value of the dollar versus the Peruvian nuevo sol, what will be the total percentage return to the Peruvian Investor? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

b. Now assume that the stock increases by $8, but that the dollar decreases by 10 percent versus the Peruvian nuevo sol. What will be the total percentage return to the Peruvian investor? Use .90 in place of 1.10 in this case. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

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Category:- Basic Finance
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