Instruction 16

question 45

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 after converting the stock back into dollars?

• A)-1.35%
• B)5.0%
• C)-5.0%
• D)-7.24%

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Definitions:

Universal Health-Care

A health care system that provides medical services to all citizens regardless of their ability to pay, typically funded by the government.

For-Profit System

A business or institution operated with the primary goal of making profits for its owners or shareholders, as opposed to non-profit organizations which aim to serve a public good.

Black Death

A devastating global epidemic of bubonic plague that struck Europe and Asia in the mid-14th century, leading to massive population declines and social upheavals.

Sociology

An analysis of how people behave in societal contexts, the nature of social connections, interactions within society, and the cultural aspects influencing everyday life.