Instruction 13.1: Use the Information to Answer the Following Question(s)

question 65

Multiple Choice

Instruction 13.1:
Use the information to answer the following question(s) .
In September 2009 a U.S. investor chooses to invest $500,000 in German equity securities at a then current spot rate of $1.30/euro. At the end of one year the spot rate is $1.35/euro.
-Refer to Instruction 13.1. At the end of the year the investor sells his stock that now has an average price per share of €57. What is the investor's average rate of return after converting the stock back into dollars?

• A) -1.35%
• B) 5.0%
• C) -5.0%
• D) -7.24%

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Definitions:

Epididymitis

Inflammation of the epididymis.

Untreated Chlamydia

A condition where the bacterial infection Chlamydia trachomatis is left without medical treatment, which can lead to serious health complications.

Acute Arthritis

A condition characterized by the sudden onset of inflammation in one or more joints, causing pain and swelling.

Lymphogranuloma Venereum

A sexually transmitted infection caused by certain strains of Chlamydia trachomatis bacteria, characterized by enlarged and tender lymph nodes.