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5.) The Australian mining company BHP Billiton trades in the US on the NYSE as an ADR with the symbol BHP. The price of an ordinary share on the Sydney stock exchange is AUD 95, and the price of the ADR is US$142.50. The current exchange rate is US$0.75/AUD. You have $50,000 to invest. One ADR buys two ordinary BHP shares on the Sydney exchange. Six months from today the local currency price is AUD 107, and the exchange rate is US$0.65/AUD a.) What is your rate of return measured in US dollars? b.) How much of your return is due to the change in the stock price and how much is due to the change in the currency?

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