Calculate the Euro-Based Return an Italian Investor Would Have Realized

question 8

Essay

Calculate the euro-based return an Italian investor would have realized by investing €10,000 into a £50 British stock using 50% margin. One year after investment, the stock pays a £1 dividend, and sells for £54 the exchange rate has changed from €1.25 per pound to €1.30 per pound. The interest on the margin loan is 1% per year. The margin loan was denominated in pounds.

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Definitions:

Productivity

The measurement of the efficiency of production, often defined as the ratio of output per unit of input, within a specific time period.

Nutritional Value

Indicates the content of essential nutrients in a food item, contributing to a healthy diet.

Measles

A highly contagious viral infection known for its distinctive red rash and fever, primarily affecting children and sometimes leading to serious complications.

Pigs

Domesticated animals of the genus Sus, often farmed for their meat, known as pork, and have a significant role in various cultural contexts.