Compute total return on investment in terms of us dollars

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Question - Mr. James K. Silber, an avid international investor, just sold shares of Nestlé, a Swiss firm, for CHF6,455. The shares were bought for CHF4,856 a year ago. The USD/CHF rate is 1.023 now and was 0.997 a year ago. Mr. Silber received CHF180 as a cash dividend immediately before the shares were sold.

Suppose that Mr. Silber sold CHF4,856, his principal investment amount, forward at the forward exchange rate of 1.046.

Required - Compute the total return on this investment in terms of U.S. dollars.

Reference no: EM133039095

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