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

question 55

Essay

Calculate the euro-based return an Italian investor would have realized by investing €10,000 into a $50 American stock.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,although he sold $17,600 forward at the forward rate of €0.65 per dollar.

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Definitions:

Observations

In statistics and research, these are the collected data points or instances from which insights and conclusions are drawn.

Confidence Level

A measure of the reliability or certainty of a statistical result, typically expressed as a percentage.

Level Of Confidence

The probability, often expressed as a percentage, that a parameter lies within a specified interval.

Confidence Interval

A series of values, yielded by sample statistical study, thought to encompass the value of an unrevealed population parameter.