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In: Finance

A Chinese investor bought 50,000 Yuans worth of stock in AMZN when it was selling for...

A Chinese investor bought 50,000 Yuans worth of stock in AMZN when it was selling for $950 and the exchange rate was 1USD = 6CNY. He just sold his shares for $ 1,650 per share and 1USD = 7CNY. What was the total return of the investor? What percentage of the total return was due to change in share price? What percentage of the return was due to change in exchange rate?

Please show work on EXCEL with formulas.

Solutions

Expert Solution

Yuans invested 50000
USD invested 8333.333333
Number of stocks purchase 8.771929825
Sale
Value of shares in USD 14473.68421
Value of shares in Yuan 101315.7895
Net Profit 51315.78947 yuan
Percentage return 102.63%
Percentage return due to change in price 73.68%
Percentage return due to change in exchange rate 28.95%

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jeff jeffy answered 2 months ago
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