What is net rate of return

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Reference no: EM131957909

You just bought some ADRs of GSK. You expect that the shares of the company, currently trading on the London Stock Exchange at 40 GBP per share, will appreciate over the next year by 7.19%. You expect that over the same time period, the value of the British pound (GBP), which is currently trading at 1.25 USD/GBP, will depreciate by 5.61% relative to the USD. What is the net rate of return that you expect on your ADRs for the next year? (Enter answer in percents, to two decimal places.)

Reference no: EM131957909

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