-An Australian Investor Purchases a European-Based Investment at a Price

question 35

Multiple Choice

$\begin{array}{|l|l|l|}\hline & \text { Start of period } & \text { End of period } \\\hline \text { Investment value (USD) } & \$ 1000 & \$ 1200 \\\hline \text { Exchange rate (AUD/USD) } & 1.3500 & 1.3500 \\\hline\end{array}$
-An Australian investor purchases a European-based investment at a price of EUR52.50 when the exchange rate was AUD0.6500/AUD.If the exchange rate when the investment was sold was 0.6400,what must the investor sell the investment for to make a discrete return of 15%?

• A) \( \$ 45.57 \)
• B) \( \$ 51.69 \)
• C) \( \$ 53.36 \)
• D) \( \$ 59.43 \)

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Definitions:

Standard Deviation

A measure of the dispersion or variability within a set of numerical data, indicating how spread out the numbers are.

Standardize

To make consistent by conforming to a set standard or protocol to ensure uniformity and comparability.

IQ Test

A standardized test designed to measure human intelligence and cognitive abilities in relation to an average population.

Norms

Shared expectations or rules within a society or group that dictate appropriate and acceptable behavior, values, beliefs, and attitudes.