What rate of return do you expect to earn mexican equities

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Reference no: EM13908754

INTERNATIONAL FINANCE. You are evaluating investments in U.S. equities and Mexican equities. Your stock analysts anticipate that U.S. equities will appreciate 9% over the next year. The Mexican equities are expected to rise 15%. Your foreign exchange analyst expects the exchange rate for Mexican pesos, MP, to change from $.14286/MP to $.142015/MP. What rate of return do you expect to earn on the Mexican equities? Note: be sure to convert all values to USD before calculating the percentage return.

14.32%

15%

14.25%

None of the above

Reference no: EM13908754

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