Decompose the Return an American Would Have If He Had

question 36

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% total return; 20% asset return; 4% attributable to exchange rate changes
• B)20% total return; 16.77% asset return; 3.23% attributable to exchange rate changes
• C)24% total return; 20% asset return; 3.33% attributable to exchange rate changes
• D)None of the above

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Definitions:

Brain Changes

Alterations in the structure, function, or chemistry of the brain due to various factors such as learning, aging, injury, or disease.

Adolescence

is a developmental stage between childhood and adulthood characterized by significant physical, psychological, and social changes.

Zygote

The initial cell formed when a new organism is conceived, resulting from the combination of a sperm cell and an egg cell.

Embryo

An early stage of development in multicellular organisms, in humans, it refers to the stage after fertilization and before becoming a fetus.