Compute the total return on the investment

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Mr. James K. Silber, an avid international investor, just sold shares of Nestlé, a Swiss firm, for CHF5,169. The shares were bought for CHF4,509 a year ago. The USD/CHF rate is 1 now and was 1.057 a year ago. Mr. Silber received CHF156 as a cash dividend immediately before the shares were sold. Suppose that Mr. Silber sold CHF4,509, his principal investment amount, forward at the forward exchange rate of 1.029.

Problem 1: Compute the total return on this investment in terms of U.S. dollars. (X.XX%) (including the gain/loss from the hedge)

Reference no: EM132877382

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