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

question 87

Essay

Calculate the euro-based return an Italian investor would have realized by investing €10,000 into a $50 American stock using 50 percent margin.One year after investment,the stock pays a $1 dividend,and sells for $54 the exchange has changed from €0.625 per dollar to €0.6875 per dollar.The interest on the margin loan is 1 percent per year.The margin loan was denominated in dollars.

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Definitions:

Rotates

The action of an object or part of it turning around its own axis or a central point, which is common in mechanical and anatomical systems.

Deltoid

A large, triangular muscle covering the shoulder joint and used for lifting and rotating the arm.

Tenodesis

A surgical procedure to stabilize a joint by anchoring the tendons around it, often used in wrist and hand surgeries.

Surgical Repair

A medical procedure that involves the reconstruction or restoration of body parts to improve function or appearance.