What is the real rate of return measured in us dollars

Reference no: EM131937384

Question: Assume that parity holds. At t=0, a U.S. investor purchases a British stock at £0.7. U. S. inflation is 3%, British inflation is 4%. The British stock's local currency return is 40%. What is the real rate of return measured in U.S. dollars? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131937384

Questions Cloud

What is the practical limit based on liquidity : What is the legal limit on current dividends? What is the practical limit based on liquidity?

What is the investment proportion : What is the investment proportion, y? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

The bond using assumption of semiannual payments : Compute the current price of the bond using an assumption of semiannual payments.

What are your client investment proportions in stocks : What are your client's investment proportions in your three stocks and the T-bill fund? (Do not round intermediate calculations).

What is the real rate of return measured in us dollars : Assume that parity holds. At t=0, a U.S. investor purchases a British stock at £0.7. U. S. inflation is 3%, British inflation is 4%.

Review problem related to hiring employees : Assume you are the manager in a small restaurant; you are responsible for hiring employees, surprising them, and recommending them for promotion.

What is the internal growth rate : What is the internal growth rate? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16)).

Calculate present value of total inflows and total outflows : Calculate the present value of total outflows. Calculate the present value of total inflows. Calculate the net present value.

What is the payment amount : Assume you pay $24,000 today in exchange for an annuity with monthly payments, an APR of 6.75 percent, and a life of 15 years. What is the payment amount?

User Account

All Pages