Suppose a U.S. investor wishes to invest in a British firm currently selling for ₤50 per share. The investor has $7,000 to invest and the current exchange rate is $1.40/₤.
-After one year,the exchange rate is unchanged and the share price is ₤55.What is the pound-denominated return?
A) 14%
B) 10%
C) 9.3%
D) 7.1%
Correct Answer:
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