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Calculate the euro-based return an Italian investor would have realized by investing €10,000 into a £50 British stock. One ye
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Answer #1

Converting 10000 Euro to Pound @ 1.25

1 POund = 1.25 Euro

1 Euro = 1/ 1.25 = 0.8 Pound

10000 Euro = 10000* 0.8 Pound

= 8000

No of stock bought = Pound invested / Value per Share

= 8000 / 50

= 160 shares

Income = Dividend + Increased per share Value

= 1 + (54- 50)

= 1+4 = 5

Total Income = 160 Shares * 5 = 800

Total Value of Investment in Pound = 800 + 8000 = 8800

Value in Euro = 8800 * 1.30 = 11440 Euro

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