You Invest $150,000 in Germany When the Exchange Rate Is

question 47

Multiple Choice

You invest $150,000 in Germany when the exchange rate is $1.25/€. Your investment gains 10%, and you subsequently exchange the euros back into dollars at a rate of $1.20/€. What is your total percentage return on this investment?

• A)4.48%
• B)4.89%
• C)5.10%
• D)5.35%
• E)5.60%

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Definitions:

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