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

question 18

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Calculate the euro-based return an Italian investor would have realized by investing €10,000 into a £50 British stock.The stock pays a £0.30 quarterly dividend,and after one year the investment sells for £54 the exchange rate has changed from €1.25 per pound to €1.30 per pound.

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Definitions:

Mnemonic Device

a learning technique that aids information retention or retrieval by making associations with memorable constructs.

Implicit Memory

A form of enduring memory that allows individuals to carry out activities without being consciously aware of past encounters.

Long-term Memory

The phase of the memory process that is capable of storing information for extended periods of time, ranging from minutes to a lifetime.

Short-term Memory

A cognitive system with a limited capacity that is capable of temporarily holding information available for processing.

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