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

question 37

Essay

Calculate the euro-based return an Italian investor would have realized by investing €10,000 into a £50 British stock.One year after investment,the stock pays a £1 dividend,and sells for £54.Spot exchange rates at the start and end of the year are shown in the table. $$\begin{array} { | l | l | l | } \hline & \mathrm { T } = 0 & \mathrm {~T} = 1 \\\hline \text { euro } & \$ 1.60 & \$ 1.60 \\\hline \text { pound } & \$ 2.00 & \$ 2.08 \\\hline\end{array}$$

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