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Decompose the Return an American Would Have If He Had

Question 95

Multiple Choice

Decompose the return an American would have if he had bought a German stock at €100 per share and sold it one year later at €120.The spot exchange rate one year ago was $1.50 = €1 and the spot rate prevailing at the end of the year was $1.55 = €1.


A) 24 percent total return; 20 percent asset return
B) 20 percent total return; 16.77 percent asset return
C) 16 percent total return; 20 percent asset return
D) none of the options

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