Multiple Choice
Suppose that you bought a Japan Fund at 84.26 Japanese yens per Canadian dollar a year ago. Unfortunately, the fund lost 20% over this period. What is the real return for this investment in terms of yens? Assume that the spot rate is 82.07 yens per Canadian dollar today.
A) 82.13%
B) 10.92%
C) 27.65%
D) -10.11%
E) -17.92%
Correct Answer:
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