Calculate the euro-based return an Italian investor would have realized by investing €10,000 into a £50 British stock on margin with only 40 percent down and 60 percent borrowed.The stock pays a £0.30 quarterly dividend,and after one year the investment sells for £54 the exchange rate has changed from €1.25 per pound to €1.30 per pound.The interest on the margin loan is 1 percent per year.The margin loan is denominated in pounds.

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The Answer of Calculate the euro-based return an Italian investor would have realized by investing €10,000 into a £50 British stock on margin with only 40 percent down and 60 percent borrowed.The stock pays a £0.30 quarterly dividend,and after one year the investment sells for £54 the exchange rate has changed from €1.25 per pound to €1.30 per pound.The interest on the margin loan is 1 percent per year.The margin loan is denominated in pounds.

Calculate the Euro-Based Return an Italian Investor Would Have Realized