Question

Suppose you are a euro-based investor who just sold Tesla shares that you had bought six months ago. You had invested €10,000 to buy Tesla shares for $600 per share; the exchange rate was $1.55 per euro. You sold the stock for $675 per share and converted the dollar proceeds into euro at the exchange rate of $1.50 per euro. Compute the rate of return on your investment in euro terms

Select one:

a. −9.09%

b. 12.50%

c. 23.55%

d. 16.25%

Answer #1

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