Exchange Rate Risk What is the percentage change in value of a $50 million investment in Russia when the exchange rate changes from $1 = 7 rubles to $1 = 12 rubles?

Question

Quizplus · Accepted Answer

The percentage change in value is calculated as follows:(New exchange rate - Old exchange rate) / Old exchange rate * 100= (12 - 7) / 7 * 100= 5 / 7 * 100= 0.714 * 100= 71.43%Therefore, the percentage change in value is 71.43%.

Exchange Rate Risk What Is the Percentage Change in Value