Instruction 16

question 38

Multiple Choice

Instruction 16.1:Use the information to answer the following question(s) .
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 16.1. 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 before converting the stock back into dollars?

• A)5.0%
• B)-3.0%
• C)-5.0%
• D)3.0%

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Definitions:

Liability Of Bankers

The legal responsibilities and obligations bankers have in their professional conduct towards customers and the public.

Third Parties

Individuals or entities that are not directly involved in a contract or agreement but may be affected by its outcomes or hold certain rights or obligations related to it.

Primary Wrongdoers

Individuals or entities directly responsible for a tortious act or violation, distinguished from secondary parties who may also bear liability.

Appointed By President

Refers to individuals who are chosen and assigned roles or positions within the government by the President, often subject to confirmation by the legislature.