Calculate the euro-based return an Italian investor would have realized by investing €10,000 into a £50...

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Finance

Calculate the euro-based return an Italian investor would haverealized by investing €10,000 into a £50 British stock. One yearafter investment, the stock pays a £1 dividend, and sells for £54the exchange rate has changed from €1.25 per pound to €1.30 perpound, although he sold £8,800 forward at the forward rate of €1.28per pound.
Return= 28%
Continue from problem #2. Assuming the same investor sold£10,000 forward at the forward rate of €1.28 per pound (Instead of£8,800). Calculate the return of this Italian investor.
Return=_____%

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1 Initial investment by Italian Company is Eur 10000 2 Bought stock at 50 Pound each at current exchange rate of 125 3 No of stock purchased is 1000012550 8000 Pounds 4 No of See Answer

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Calculate the euro-based return an Italian investor would haverealized by investing €10,000 into a £50 British stock. One yearafter investment, the stock pays a £1 dividend, and sells for £54the exchange rate has changed from €1.25 per pound to €1.30 perpound, although he sold £8,800 forward at the forward rate of €1.28per pound.Return= 28%Continue from problem #2. Assuming the same investor sold£10,000 forward at the forward rate of €1.28 per pound (Instead of£8,800). Calculate the return of this Italian investor.Return=_____%