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Local Currency Exposure

Quick question...

A US investor is buying a japanese investment Therefore his dollar return will equal the return in the japanese investment and the % change in the USD/JPY Currency.

For example, if stock goes up by 10% and the yen goes up by 5%, his total "Gain" would be 15%. (Not a perfect example, I know). I am looking at reading 68 in schweser.

If the YEN appreciates in value against the dollar, isn't the dollar worth less? How would there be a gain here?

What am I missing?

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