What is the overall rate of return on the portfolio

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One year ago, an American investor bought 8000 shares of London Bridges at a price of £34 (or 34 UK pounds) per share when the exchange rate was $1.2/1£ (or $1.20 dollars = 1 pound). The investor also invested 10,000,000 Japanese Yen in a money market fund in Japan last year when the exchange rate was 110 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 10% (in the 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?

Note: I would prefer the problem be solved using excel. Please be sure to show all work and formulas.

Reference no: EM131554712

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