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Driving myself crazy with this easy F/X question
I’m on the Global Performance readings. CFAi Page 206 & 209.
Recall this formula
Return = CG + Div + Currency, where Currency = e(1 + CG + Div)
in the given example in Yen, shouldn’t the return be .10+ 0 + -.05(1 + .10)?
I’m missing something small, i think it’s the e part(which is change in local currency %).
i thought e was (105Y - 100Y) / 100Y = .05(loss in Y). if you do the inverse( $/ Yen) you get .009524 - .01/.01 = -.0476.
I can’t seem to figure out what this discrepency is, please help! |
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