You are a U.S. investor who purchased British securities for 2,000 pounds, one year ago when the British pound cost $1.50. No dividends were paid on the British securities in the past year. Your total return based on U.S. dollars was __________ if the value of the securities is now 2,400 pounds and the pound is worth $1.60.

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The correct answer is C.The total return is calculated as follows:Return on investment = (Current value of investment - Initial value of investment) / Initial value of investmentReturn on investment = ((2,400 pounds * $1.60) - (2,000 pounds * $1.50)) / (2,000 pounds * $1.50)Return on investment = (3,840 - 3,000) / 3,000Return on investment = 840 / 3,000Return on investment = 0.28Return on investment = 28%

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