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In September 2009 a U.S. investor chooses to invest $500,000 in German equity securities at a then current spot rate of $1.30/euro. At the end of one year the spot rate is $1.35/euro.
-Refer to Instruction 17.1. At the end of the year the investor sells his stock that now has an average price per share of €57. What is the investor's average rate of return after converting the stock back into dollars?
T-Distribution
A probability distribution used in statistics that arises when estimating the mean of a normally distributed population in situations where the sample size is small and population variance is unknown.
Confidence Interval
A range of values, derived from the sample data, that is believed, with a certain degree of probability, to contain the true population parameter.
Margin Of Error
An estimate of the amount by which an observed sample result may differ from the true value, providing a confidence interval for the estimation.
Statistic
A numerical characteristic or measure of a sample extracted from a larger population.
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