1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
madam [21]
3 years ago
10

You are evaluating investments in U.S. equities and Mexican equities. Your stock analysts anticipate that U.S. equities will app

reciate 9% over the next year. Mexican equities are expected to rise by 15%. Your foreign exchange analyst expects the exchange rate for Mexican pesos, MP, to change from $0.14286/MP to $0.142015/MP. In U.S. dollar terms, what rate of return do you expect to earn on your Mexican equity investment
Business
1 answer:
Advocard [28]3 years ago
3 0

Answer:

14.32%

Explanation:

We have the investment sum of 100 dollars

We convert to mexican pesos

100x0.14286

= 700 MP

700 mexican pesos invested on equities gets 25% return

Redeemable amount after a year = 700 x (1+15%)

= 805

After a year money gotten back in dollars

805 x 0.142015

= 114.32 dollars

Net return = 114.32 - 100 = 14.32

Expressed in percent = 14.32%

You might be interested in
This type of cover letter style does a side by side comparison of an employer’s requirements and an applicant’s experience: a. P
Vsevolod [243]
It is B just took the test 
6 0
3 years ago
Read 2 more answers
Help !!! It’s about how much money you will make by 65
JulijaS [17]

Answer: it doesn't matter.

Explanation:

It doesn't matter how much money you make along as you have money to support yourself

3 0
3 years ago
Seven years ago, you paid $324,800 to purchase a rental house. the maintenance expenses average $200 a month and property taxes
Mariulka [41]

The value that would be assigned to this house if you decide to use it as your office would be $ 425300

<h3>How to solve for the value of the house using opportunity cost</h3>

To get the value of the house, you have to get the opportunity cost of the house. This is the foregone alternative or benefits forgone due to another choice.

The formula is opportunity cost = Apprised Value - Selling costs

The apprised value = $439,500.

selling cost =  $14,200

$439,500 - $14,200

= $ 425300

Hence the value that should be assigned to it is $ 425300

Read more on opportunity cost here:

brainly.com/question/1549591

#SPJ4

3 0
2 years ago
Suppose the central bank implements expansionary monetary policy where the money supply increases. Which of the following will t
natka813 [3]

Answer:

D they both will increase

Explanation:

Goodluck on that.

4 0
2 years ago
What will happen to the trade balance and the real exchange rate of a small open economy when government purchases increase, as
kkurt [141]

Answer: When a government purchase increases during a war, be it a local war or a world war. it means that it's savings has reduced, therefore the trade balance will fall. And if the purchase is done to import more goods into the country, the trade balance becomes negative, leading to a deficit.

The exchange rate of the currency will reduce because the country the government is making more currency to be available and surplus, by increasing it's purchase. When they is excess currency in the world market, the currency reduces it value. In a world war, or local war, the exchange rate may not actually reduce because, it will be difficult for the country to have enough money to make its currency to be available in the world market.

7 0
3 years ago
Other questions:
  • Researching investments online can be valuable because:
    7·1 answer
  • When an economist says that a currency has become stronger he or she means that?
    8·2 answers
  • It is important for a good economic model to predict cause and effect so that it can: explain events that have occurred and help
    12·2 answers
  • Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies fo
    15·1 answer
  • Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year (in millions of dollars): N
    5·1 answer
  • A portfolio manager generates a 10% rate of return on a "small cap" portfolio, compared to an 8% rate of return on the benchmark
    5·1 answer
  • The _____ of a police officer would state that the purpose of the job is to protect citizens, patrol highways, provide safe and
    11·1 answer
  • GTYOC Aviation had a profit margin of 8.00%, a total assets turnover of 1.5, and an equity multiplier of 1.0. What was the firm'
    6·1 answer
  • How can understanding the economy help you to make better financial decisions?
    7·1 answer
  • Anyone who wants to use copyright material must obtain permission from the copyright owner in the form of a ____.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!