An Investor Starts with $1 Million and Converts It to 0.75

question 52

Multiple Choice

An investor starts with $1 million and converts it to 0.75 million pounds,which is then invested for one year. In a year the investor has 0.7795 million pounds,which she then converts to dollars at an exchange rate of 0.72 pounds per dollar. The U.S. dollar annual rate of return earned was ________.

• A)4.97 percent
• B)5.27 percent
• C)6.45 percent
• D)7.69 percent
• E)8.26 percent

---

Definitions:

Disclosure Requirements

Legal or regulatory obligations to provide certain information to stakeholders, typically to ensure transparency and inform decision-making.

Insider Trading

Engaging in stock exchange transactions for personal benefit by exploiting confidential information, an act considered illegal.

Securities Exchange Act

A U.S. law regulating the trading of securities, aimed at protecting investors and maintaining fair and efficient markets.

Tipper

An individual who provides privileged, non-public information to another person, typically about securities trading.