Project #8997 - Investment and Portfolio Management

Quincy has recently been hired by an international investment firm that has offices in both London and New York. His boss has asked that he look into investing some of the firm's U.S.-based funds into a British company that currently sells at 80 pounds sterling (GBP) per share. Quincy’s boss has limited his investable funds initially to $100,000. The current exchange rate between U.S. dollars (USD) and GBP is 2USD/1GBP.

  • Given the above scenario, how many shares would Quincy be able to purchase?
  • Calculate the different rates of return and repatriated returns in the below table:

Price Per Share (GBP)

GBP Based Return

USD Denominated Return

1.80USD/1GBP

2USD/1GBP

2.20USD/1GBP

70

 

 

 

 

80

 

 

 

 

90

 

 

 

 

 

  • Explain why the results vary so much.
  • How do the exchange rates vary the results more than expected here?

Please submit your assignment.

For assistance with your assignment, please use your text, Web resources, and all course materials.

Reading Assignment:

Bodie, Kane, Marcus chapters 19, 21.

 

Due Date:
7/14/2013 11:59:59 PM (3 Days)

 

Total Pts:
150

 

Points Earned:
n/a

 

Deliverable Length:
1–2 pages

Assignment Type:
Individual Project

 

Subject Business
Due By (Pacific Time) 07/13/2013
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