Assume That the Spot Rate Is $\times$ 8426/C$ at the Beginning of the Year And at the Beginning

question 60

Multiple Choice

Assume that the spot rate is $\times$ 84.26/C$ at the beginning of the year and $\times$ 82.07/C$ at the end of the year. Over the same period, the Japanese stock market has gained 20%. What is the real return for a Canadian investor?

• A) 23.20%
• B) 32.43%
• C) 67.58%
• D) 10.27%
• E) 2.67%

---

Definitions:

Constant Returns To Scale

Long-run average total cost is constant as output increases.

Long-Run Average Total Cost

The average cost per unit of output when all inputs, including those typically fixed, are variable and optimized.

Variable Cost

Costs that vary directly with the level of production or output, such as materials and labor, in contrast to fixed costs, which remain constant regardless of output levels.

Long-Run Average Total Cost Curve

A graphical representation that shows the lowest cost at which a firm can produce any given level of output in the long run, when all inputs are variable.