Question

In 2012 one dollar bought 100 yen. Assume that today one dollar buys 150 yen. An investor residing in the U.S. bought 100 shares of a Japanese company in 2008. Today the investor sold those Japanese shares. The price of each share did not change over that time period. However, the currency value changed.Did the U.S. investor in Japanese stock make or lose money over that time?

Answer 1

Answer: loss

Explanation:

assuming the price of the shares in the japanese company in 2008 is  1 yen to i shares which totals 100 yen.he bought it for a dollar. in the recent market the exchange is now 150 yen to 1 dollar. i.e 100 yen wud be equal to 0.6 dollars .