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标题: confusing notation on calculating F/X returns [打印本页]

作者: brain_wash_your 时间: 2011-7-11 19:52 标题: confusing notation on calculating F/X returns

when given Beginning Spot F/X as 100Yen/$, and Ending Spot F/X as 125Yen/$

What is the "F/X" return in Yen?

How do you know when to do 125-100/100 = 25%

vs. doing the inverse

[1/125 - 1/100] / 1/100 = - 20%

I'm asking in terms of the #(the inverse thing), not the sign, which i know is negative since yen depreciated.

作者: Chuckrox 时间: 2011-7-11 19:52

foreign exchange??

作者: cityboy 时间: 2011-7-11 19:52

irregula,
I had the same problem. which way to convert to calculate % appreciation.

here is what i do now.

convert it to domestic currency (you have to any way to calculate both hedged and unhedged returns).

change/original investment = % change.

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