Answer:
Total Return = 10.45%
Explanation:
To calculate the return, we must first determine the appreciation in the value of the securities in terms of the US dollar.
The initial investment in terms of US dollar was of,
Initial Investment in USD = Investment in Pounds * Exchange rate
Initial Investment in USD = 2340 * 1.52
Initial Investment in USD = $3556.8
The current value of the investment in terms of USD is,
Current value of investment in USD = 2440 * 1.61
Current value of investment in USD = $3928.4
The formula to calculate total return is,
Total Return = (Current Value - Initial Value) / Initial Value
So, the total return based on US dollars was:
Total return = (3928.4 - 3556.8) / 3556.8
Total Return = 0.10447 or 10.447% rounded off to 10.45%
