Solution-Appreciation or depreciation of the euro

Appreciation or depreciation of the euro

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Reference no: EM132955435

A US investor purchases one share of Siemens stock in the Frankfurt Stock Exchange for €112. The spot exchange rate is $1.14/ €. A year later, the stock sells for €108. In the meantime, the Euro has appreciated to $1.30/ €. What rate of appreciation or depreciation of the Euro would have ensured a rate of return of 12% to a US investor?

Reference no: EM132955435

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Appreciation or depreciation of the euro

Reference no: EM132955435

Reference no: EM132955435

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