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

question 90

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 the exchange rate has changed from €1.25 per pound to €1.30 per pound,although he sold £10,000 forward at the forward rate of €1.28 per pound.

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Definitions:

Uncomfortable

A state of physical or psychological discomfort or unease.

Premenstrual Syndrome

A collection of physical and emotional symptoms that some women experience before their menstrual period.

Hormonal Fluctuations

Variations in the level of hormones in the body, which can affect mood, health, and behavior.

Premenstrual Dysphoric Disorder

A severe form of premenstrual syndrome (PMS) causing significant emotional and physical symptoms that disrupt daily life.