bodhisattva

total return: 38.89%
local : 25%

jmh530

JPY Depcreciates. 100 JPY/USD to 110 JPY/USD

Colum

This is a really tricky question guys

bboo

Soccertom9 Wrote:
-------------------------------------------------------
> You are an American with a holding in Japan that
> moved up in value from 100 to 125 CAD and at the
> same time the Japanese currency depreciated by
> 10%. (100 JPY/USD to 90 JPY/USD)
>
> State what are the:
>
> Total Return
> Local Return
> Return segmented by capital gains, currency and
> yield.

Please correct your question...USD or JPY, which one depreciates?

bpdulog

It appears as if the Japanese Yen appreciated and not depreciated as stated in the question.

mcmc

Sorry CAD is supposed to be JPY.

And believe it or not originally the question I wrote had Mexican Pesos in there!

aidebaobao

Trick question, you gave us an asset return measured in CAD and FX returns in USD.

NO EXCUSES

Zestt

Am I right if Japan currency = CAD?? haha

oneboy

Total Return = 25% - 10% + (.25*-.1) = 12.5%
Local return = 25%

Cap gains = 25%
curreny = -10%
interaction between CG and currency = -2.5%