Compute the total return on this investment

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Question - Mr. James K. Silber, an avid international investor, just sold shares of Nestlé, a Swiss firm, for CHF5,169. The shares were bought for CHF4,509 a year ago. The USD/CHF rate is 1 now and was 1.057 a year ago. Mr. Silber received CHF156 as a cash dividend immediately before the shares were sold.

Suppose that Mr. Silber sold CHF4,509, his principal investment amount, forward at the forward exchange rate of 1.029. Compute the total return on this investment in terms of U.S. dollars.

Reference no: EM132954778

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