Decompose the Return an American Would Have If He Had

question 78

Multiple Choice

Decompose the return an American would have if he had bought a German stock at €100 per share and sold it one year later at €120.The spot exchange rate one year ago was $1.50 = €1 and the spot rate prevailing at the end of the year was $1.55 = €1.

• A)24 percent total return; 20 percent asset return
• B)20 percent total return; 16.77 percent asset return
• C)16 percent total return; 20 percent asset return
• D)none of the options

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Definitions:

Sales Presentation

A structured dialogue or demonstration aimed at persuading a potential buyer to purchase a product or service.

Trial Close

A technique used in sales to ask preliminary questions or make statements to gauge the customer's readiness to make the purchase.

Sales Presentation

A speech or demonstration given to persuade a potential buyer of the value and benefits of a product or service.

Buying Decision Process

The series of steps a consumer goes through, from recognizing a need to the actual purchase decision.