Question

An investor in the United States bought a one-year Brazilian security valued at 210,000 Brazilian reals (R$). The U.S. dollar equivalent was $160,000. The Brazilian security earned 16 percent during the year, but the Brazilian real depreciated 5 cents against the U.S. dollar during the time period ($0.76 to $0.71).

After transferring the funds back to the United States, what was the investor’s return on her $160,000

Answer 1

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