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:

Dopamine Receptors

Proteins located in the brain and other parts of the body that interact with the neurotransmitter dopamine, influencing mood, motivation, and movement.

Cultural Backgrounds

The environment, traditions, social influences, heritage, and education that shape an individual's or group's upbringing and world view.

Bipolar Disorder

A mental health condition marked by extreme mood swings, including emotional highs (mania or hypomania) and lows (depression).

Lithium

Lithium is a chemical element used in the treatment of bipolar disorder to stabilize mood and reduce the severity of mood swings.