Emerald Energy is an oil exploration and production company that trades on the London stock market.Over the past year,the stock has gone from £50 per share to £55,but over the same period,the dollar has depreciated ten percent.Calculate the investor's annual percentage rate of return in terms of the U.S.dollars.

Question

Quizplus · Accepted Answer

To calculate the investor's annual percentage rate of return in terms of U.S. dollars, we need to consider the change in the stock price in both GBP and USD. The percentage change in GBP is ((55-50)/50)*100 = 10%. However, due to the depreciation of the US dollar by 10%, the investor's return in USD is ((55/1.1)-50)/50*100 = -1%. Therefore, the correct answer is B.

Emerald Energy Is an Oil Exploration and Production Company That