Determine the profit from this investment in euro terms

Assignment Help Financial Management

Reference no: EM132005567

Suppose you are a euro-based investor who just sold Microsoft shares that you had bought six months ago. You had invested 10,000 euros to buy Microsoft shares for $120 per share; the exchange rate was $1.15 per euro.

You sold the stock for $135 per share and converted the dollar proceeds into euro at the exchange rate of $1.06 per euro.

First, determine the profit from this investment in euro terms. Second, compute the rate of return on your investment in euro terms.

How much of the return is due to the exchange rate movement?

Reference no: EM132005567

Questions Cloud

Calculate the density of a penny minted in 1980 : Calculate the density of a penny minted in 1980. [(% Cu) * (Cu density) + (%Zn) * (Zn density)]

Analyze the expected share price at the end of 2014 : Assume the market risk premium is 9.9 percent, Treasury bills yield 3.6 percent, and the projected beta of the firm is .94.

Brief overview of the case : Assess the leadership, human resources and organizational development needs associated with Heinkeins strategic goals. A brief overview of the case

Possible effects of global warming indicate : United Nations forecasts describing the possible effects of global warming indicate that Sub-Saharan Africa is likely to suffer more damage and hardship

Determine the profit from this investment in euro terms : You sold the stock for $135 per share and converted the dollar proceeds into euro at the exchange rate of $1.06 per euro.

What is the latitude of where you live : What is the latitude of where you live (google it if you do not know)? How much insolation is received at that location on the summer solstice?

Order and stream magnitude approaches work : Regarding the topic of Channel ordering (Geomorphology), how do the stream order and stream magnitude approaches work?

What is the misclassification rate of the model : Suppose a DM model classifies 100 records into two classes (say, response and non-response) as follows: correctly classifies 17 responses;

Geographers use to study geography : So, with this information in mind, please respond to the following questions. What is Geography and how might we study it? What are the fundamental elements

User Account

All Pages