Return on the security in local currency terms

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Global Funds, a US-based mutual fund company is currently evaluating the recent performance of shares in Berkeley Homes, a publicly traded British homebuilder listed on the FTSE 100. The baseline investment amount used by Global is $1,000,000.

a. What was the return on the security in local currency terms?

b. What was the return on the security in U.S. dollar terms?     

c. Does this mean it was a good investment for a local investor, a U.S based investor, or both?

 

Jan 1st Purchase

Dec 31st Sale

Distributions

Share price, euros

€ 545.00

€ 667.60

€ 45.00

Exchange rate, US$/euro

$1.260

$1.3450

 

Reference no: EM133067964

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