What is the overall rate of return on the portfolio

Assignment Help Finance Basics
Reference no: EM13267138

One year ago, an American investor bought 1000 shares of London Bridges at a price of £62 (or 62 UK pounds) per share when the exchange rate was $1.5/1£ (or $1.50 dollars = 1 pound). The investor also invested 1,800,000 Japanese Yen in a money market fund in Japan last year when the exchange rate was 85 Yen = $ 1 US.

(a) Using current exchange rates, what is today's value of the investor's portfolio in U.S. dollars if the UK investment decreased 5% (in local currency) and the Japan investment increased 1% (in local currency)?

(b) What is the overall rate of return on the portfolio over the last year?

 

Reference no: EM13267138

Questions Cloud

Explain how many grams of cacl2 for a solution : How many grams of NaCl would be needed to make 1.5 liters of a solution containing 200mEq of Cl-/liter? 2. How many grams of CaCl2 would be needed to make 0.5 liters of a solution containing 150mEg of Cl-/liter
What is choi cost of new common stock : The Choi's Company's next expected dividend, D1, is $3.18; its growth rate is 6 percent; and its stock currently sells for $36. New stock can be sold to net the firm $32.40 per share. (a) What is Choi's percentage flotation cost? (b) What is Choi'..
Compute the calorie content of 75g of candy : A 15-g sample of the candy is placed in a small aluminum container of mass 0.325 kg filled with oxygen, compute the Calorie content of 75g of candy
Find how many more revolutions of the pedals mountain biker : Typical gearing for most bicycles ranges from 30 to 50 teeth on the chain wheel and 12 to 30 teeth on the rear cog. Find how many more revolutions of the pedals the mountain biker will make during 480 miles trip using average pedaling time
What is the overall rate of return on the portfolio : Using current exchange rates, what is today's value of the investor's portfolio in U.S. dollars if the UK investment decreased 5% (in local currency) and the Japan investment increased 1% (in local currency)?
Write a research paper on autonomic computing : Write a research paper (excluding the cover page and reference page) on the real world application of the chosen technology
Calculate the npv in u.s. dollars : Calculate the NPV in U.S. dollars. (Show all calculations and ignore working capital)
What is the mechanical energy of the block : A 2.5-kg block is attached to a spring with k=100 N/m and compress it with a distance of 0.40 m. What is the mechanical energy of the block
Compute the amount of carbon in a 100kg person : If you wanted to know how much carbon there is in a 100kg person, what information would you need? Try to calculate the amount of carbon in a 100kg person.

Reviews

Write a Review

Finance Basics Questions & Answers

  Computation of currency fluctuations

The value of the Australian dollar (A$) today is $0.73. Yesterday, the value of the Australian dollar was $0.69. The Australian dollar ________ by _______%.

  What was the cash flow from the project

The only capital investment required for a small project is investment in inventory. Profits this year were $11,800, and inventory increased from $4,900 to $6,800. What was the cash flow from the project?

  What is the yield to maturity of the bond

10-year, 12% coupon bond that pays interest annually is currently selling for $1,083. What is the yield to maturity of the bond? [The face value of the bond is $1,000]

  Finance problems on cash flow and discount rate

If the discount rate is 10 percent and the projects are mutually exclusive, which of the following is true, If the discount rate is 7%, which of the following is true:

  Computation of amount of insurance to be carried

Computation of Amount of Insurance to be carried using Human Value approach and Your estimates if you increased or lowered the

  What would be net present value

How many choppers would you have to sell to break even, if you required a 15% return? (Hint: Use the 15% as the discount rate and calculate net present value.

  Perspective of a member of the management team

I am trying to find some healthcare management associations I may be able to join. I want to explore various healthcare professional organizations in finance, auditing, compliance,

  Determine the firms ending cash balance

The Company suppose that wages and benefits paid to clerical personnel will be $7,000 per month while commissions to sales associates average 25 percent of collectible sales.

  Treaty of versailles

Reparations payments by Germany required under Treaty of Versailles posed the problem. How were tax payments by German citizens to their government in German marks to be converted to dollar payments to United States lenders?

  What is the cost of equity

Southern Home Cookin' just paid its annual dividend of $.80 a share. The stock has a market price of $26 and a beta of 1.1. The return on the U.S. Treasury bill is 4 percent and the market risk premium is 12 percent. What is the cost of equity?

  Calculation of cost of preferred stock capital for wacc

Calculation of cost of preferred stock capital for WACC and What is the firm's cost of preferred stock

  Find annual interest on your investment

Consider you're starting from zero now and you earn 10% find annual interest on your investment

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd