What was the companys rate of return on this investment

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Reference no: EM132014106

Suppose an MNC invested $100,000 of its dollar reserves in the Mexican stock market. One year later, the value (in Mexican pesos) of its Mexican investments has increased 65%.

During the same year, the U.S. dollar appreciated by 25% against the peso (i.e., pesos per dollar increased by 25%). What was the company's rate of return (in dollars) on this investment? Please show work.

Reference no: EM132014106

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