Instruction 16.1: Use the Information to Answer Following Question(s)

question 4

Multiple Choice

Instruction 16.1:
Use the information to answer following question(s) .
In September 2002 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 16.1. At the end of the year the investor sells his stock that now has an average price per share of euro 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%

---

Definitions:

Confederate Military Supplies

Resources and equipment provided to or produced by the Confederate States of America during the Civil War to support its military forces.

Blockade Runners

Ships used during the American Civil War to evade naval blockades by the Union and smuggle goods, such as arms and supplies, to the Confederacy.

Small Arms

Light, personal weapons such as handguns, rifles, and shotguns used by individuals or small groups.

Confederate Congress

The legislative body of the Confederate States of America during the American Civil War, responsible for creating and enforcing laws within the Confederacy.