You are planning to invest $150,000 in Hong Kong.If your Hong Kong investment gains 7.5 percent while the exchange rate moves from 7.75 Hong Kong dollars (HK$)per U.S.dollar to 7.70 per dollar over the period,what is your total return on this investment?

Question

Quizplus · Accepted Answer

$150,000 × 7.75 HK$ = 1,162,500 HK$
1,162,500 HK$ × 1.075 = 1,249,687.50 HK$
1,249,687.50 HK$ / 7.70 = $162,297.08
($162,297.08 - 150,000) / 150,000 = 8.20%

You Are Planning to Invest $150,000 in Hong Kong