A US investor bought shares in ABC Inc.on the Frankfurt Stock Exchange 2 years ago for EUR 10,000.The exchange rate at that time was EUR 1.20/USD.Currently,the shares are worth EUR 11,000 and the exchange rate is EUR 0.80/$.The investor had sold EUR 10,000 (the principal investment amount at the same time that the stock was purchased)forward at the forward exchange rate of EUR 1.15/$.What is the dollar rate of return?
Assume that the unhedged portion of the investment is exchanged at the current exchange rate.

Question

A US investor bought shares in ABC Inc.on the Frankfurt Stock Exchange 2 years ago for EUR 10,000.The exchange rate at that time was EUR 1.20/USD.Currently,the shares are worth EUR 11,000 and the exchange rate is EUR 0.80/$.The investor had sold EUR 10,000 (the principal investment amount at the same time that the stock was purchased)forward at the forward exchange rate of EUR 1.15/$.What is the dollar rate of return?
 Assume that the unhedged portion of the investment is exchanged at the current exchange rate.

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The Answer of A US investor bought shares in ABC Inc.on the Frankfurt Stock Exchange 2 years ago for EUR 10,000.The exchange rate at that time was EUR 1.20/USD.Currently,the shares are worth EUR 11,000 and the exchange rate is EUR 0.80/$.The investor had sold EUR 10,000 (the principal investment amount at the same time that the stock was purchased)forward at the forward exchange rate of EUR 1.15/$.What is the dollar rate of return?
 Assume that the unhedged portion of the investment is exchanged at the current exchange rate.

A US Investor Bought Shares in ABC Inc