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

Calculate the euro-based return an Italian investor would have realized by investing €10,000 into a $50 American stock using 50 percent margin. One year after investment, the stock pays a $1 dividend, and sells for $54 the exchange has changed from €0.625 per dollar to €0.6875 per dollar. The interest on the margin loan is 1 percent per year. The margin loan was denominated in dollars.

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jeff jeffy answered 1 year ago

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