Exchange Rate Risk What Is the Percentage Change in Value

question 99

Multiple Choice

Exchange Rate Risk What is the percentage change in value of a $50 million investment in Russia when the exchange rate changes from $1 = 7 rubles to $1 = 12 rubles?

• A)41.67 percent
• B)58.33 percent
• C)36.84 percent
• D)63.16 percent

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Definitions:

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service.

Output Effect

The impact on total output or production due to a change in selling price, affecting the quantity sold.

Price Effect

The impact on consumer demand and consumption patterns caused by changes in the price of goods or services.

Collude

To cooperate secretly, especially with the intention to deceive or achieve an illegal or deceitful purpose.