Question

Calculate the euro-based return an Italian investor would have realized by investing €10,000 into a £50...

Calculate the euro-based return an Italian investor would have realized by investing €10,000 into a £50 British stock. One year after investment, the stock pays a £1 dividend, and sells for £54 the exchange rate has changed from €1.25 per pound to €1.30 per pound, although he sold £8,800 forward at the forward rate of €1.28 per pound.

Return %=

Assuming the same investor sold £10,000 forward at the forward rate of €1.28 per pound (Instead of £8,800). Calculate the return of this Italian investor.

Return %=

(Please type out work do not write)

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