Calculate the Euro-Based Return an Italian Investor Would Have Realized $$\begin{array} { l r r } &T=0&T=1 \\\text { Euro } & 1.60 & 1.60 \\\text { Peund } & 200 & 208\end{array}$$

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 interest on the margin loan is 1 percent per year.The margin loan is denominated in pounds.
Spot exchange rates at the start and end of the year are shown in the table.
$$\begin{array} { l r r } &T=0&T=1 \\\text { Euro } & 1.60 & 1.60 \\\text { Peund } & 200 & 208\end{array}$$