A Stock in India Rises 20% in Local Terms

question 47

Multiple Choice

A stock in India rises 20% in local terms. Pound sterling rises 25% against the Indian rupee. What is the return in pound sterling?

• A) -4%
• B) 0%
• C) 4%
• D) 45%
• E) 50%

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Definitions:

Total Purchase Costs

The aggregate amount of money spent on acquiring an asset, including the purchase price and all associated fees and expenses.

Commission Charges

Fees charged by brokers or agents for their service in facilitating a transaction, often a percentage of the sale value.

Total Cost

The complete amount of money spent on producing or acquiring a product or service, including all variable and fixed expenses.

Par Value

The face value of a bond or stock as stated by the issuing company.