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

  A preparation of a repayment schedule

A Preparation of a repayment schedule and Prepare an instalment loan repayment schedule for the first

  Duration for bonds

A bondholder owns 15-year government bonds with a $1 million face value and a 6% annual coupon rate that id paid semiannually. What is the duration of the bonds?

  Determine percentage of the total payments

A house owner just obtained a thirty year amortized mortgage loan for $150,000 at a nominal annual rate of 6.5 percent, with monthly payments.

  What is the dividend payment in 2012

If dividends are expected to grow at the same arithmetic average growth rate of the last five years, what is the dividend payment in 2012?

  Compounded semi-annually for first four years

invested for total 6 years at 6% compounded semi-annually for first four years followed by 12%compounded quarterly for final 2 years.

  What is the stock value per share

What is the stock's value per share? Round your answer to two decimal places.

  What is the current share price

The company will pay a $12 per share dividend in 10 years and will increase the dividend by 5 percent per year thereafter. If the required return on this stock is 13.5 percent, what is the current share price?

  What is the net present value of this cash flow stream

If you receive $1,177 at the end of each year for the first three years and $4,724 at the end of each year for the next three years. What is the net present value of this cash flow stream? Assume interest rate is 4.3%.

  Determining the value of the project

The flow to equity approach has been used by company to value their capital budgeting projects. The total investment cost at time zero is $640,000. The corporation uses the flow to equity approach because they maintain a target debt to value ratio ov..

  Formulate and solve a linear programming model

Comfortable Hands is a corporation that features a product line of winter gloves for the entire family men, women, and the children. They are trying to decide what mix of these 3 kinds of gloves to produce.

  Determine the real risk-free interest rate

The central bank reduce the discount to rise the nation's monetary base. The nation has highly mobile international capital markets and a fixed exchange rate system.

  Make the journal entries to record the declaration

The new shares were distributed on December 10, 2013. Make the journal entries to record the declaration and distribution of the stock dividend.

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