An Investment in Mexico Produces a Return of 80

question 69

Multiple Choice

An investment in Mexico produces a return of 80%. However, the Mexican peso has just declined by 45%, relative to the dollar. The previous value of the peso was $.0066. The adjusted return on the investment is a(n) :

• A)42% gain.
• B)8.5% loss.
• C)1.0% loss.
• D)None of the above

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Definitions:

Surgical Removal

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Justified

Considered to be right or reasonable, often in situations requiring moral, legal, or rational support.

Utilitarians

The ethical theory proposing that the best action is the one that maximizes utility, typically defined as that which produces the greatest well-being of the greatest number of people.

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