User Account

All Pages

How much of the return is due to the exchange rate movement

Assignment Help Finance Basics
Reference no: EM131113806

Suppose you are a euro-based investor who just sold Microsoft shares that you had bought six months ago. You had invested 10,000 euros to buy Microsoft shares for $120 per share; the exchange rate was $1.15 per euro. You sold the stock for $135 per share and converted the dollar proceeds into euro at the exchange rate of $1.06 per euro. First, determine the profit from this investment in euro terms. Second, compute the rate of return on your investment in euro terms. How much of the return is due to the exchange rate movement?

Reference no: EM131113806

Questions Cloud

What is the mean of the sample mean lifetime : The lifetime of light bulbs produced by a particular manufacturer have a mean of 1,200 hours and a standard deviation of 400 hours. The population distribution is normal. What is the mean of the sample mean lifetime? What is the variance of the sampl..
Political factors and any significant trends : Please submit copies to the preceptor and the professor. This assignment should be as comprehensive as possible about the health care facility. It is important to include a statement of the purpose of the practicum and where it will be conducted.
Goods sold where large returns are predictable : Goods sold to another company, for which our company has signed an agreement to repurchase at a set price that covers all costs related to the inventory.
Describe the skills leader of a public health organization : Describe the skills a leader of a public health organization needs and explain why they are needed. Justify your answer through the effective use of academic references.
How much of the return is due to the exchange rate movement : First, determine the profit from this investment in euro terms. Second, compute the rate of return on your investment in euro terms. How much of the return is due to the exchange rate movement?
Describe the main chemical events at a synapse : Vision involves the structure and function and dysfunction of the eye. Why do we study vision in a biological psychology course? Include examples of how sight is related to psychological functioning.
Probability that one of these components has defect : A production manager knows that 5% of components produced by a particular manufacturing process have some defect. Six of these components, whose characteristics can be assumed to be independent of each other, are examined. What is the probability tha..
How the advent of the euro would affect international div : Discuss how the advent of the euro would affect international diversification strategies.
Discuss the issue of the supermax prison : Discuss the issue of the supermax prison. What are some of the issues that these facilities face in their operation? What are some of the issues that staff members face who work in these institutions

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the returns using capm

Assume the market portfolio has an expected return of 10% and a volatility of 20 percent, while Microsoft's stock has a volatility of 30 percent.

  First city bank pays 6 percent simple interest on its

a first city bank pays 6 percent simple interest on its savings account balances whereas second city bank pays 6

  Explain the things that someone should be aware

Put overwriting is the practice of writing put options against stock you own rather than the more common practice of writing covered calls.  Explain the things that someone should be aware of before doing this, including the best and worst things tha..

  What is the breakeven point what decisions does the

what is the breakeven point? what decisions does the breakeven point help an organization to make?what financial

  What inflation rate is expected during year 2

What inflation rate is expected during Year 2? Comment on why the average interest rate during the 2 year period differs from the 1 year interst rate expected for Year 2.

  Compute the three equal payments

To borrow $2,700, you are offered an add-on interest loan at 6 percent. Three loan payments are to be made, one at four months, another at eight months, and the last one at the end of the year.

  Q1 in the early december 2010 a friend recommended john to

q1. in the early december 2010 a friend recommended john to buy stock in abc aviation inc. pai. at that time it was in

  Answer the following questions using apa format answer the

answer the following questions using apa format. answer the questions in 750-1200 words and include charts and graphs

  What is the stock worth

SupposeToyota has non-maturing (perpetual) preferred stock outstandingthat pays a $1.00 quarterly dividend and has a required return of 12% APR (3% per quarter). What is the stock worth?

  Determine the political, economic social and capital risks

Determine the political, economic, social, and capital risks associated with doing business in China

  Determination of company sustainable growth rate

The Steiben Company has a ROE of 8.5% and a payout ratio of 35%. Determine the company's sustainable growth rate.

  Account for political risk when considering a project

Explain how a financial manager should account for political risk when considering a project in a foreign country. Assume that the financial manager works for a multinational firm with presence in many different countries.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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