In January 2012, an American investor buys 1,000 shares in a Mexican company at a price of 500 pesos each. The share does not pay any dividend. A year later she sells the shares for 550 pesos each. The exchange rates when she buys the stock are 12.9495. Suppose that the exchange rate at the time of sale is 15.7 pesos = $1.
a. What is her total return in pesos? (Do not round intermediate calculations. Round your answer to 1 decimal place.Negative value should be indicated by a minus sign.)
b. What is her total return in dollars? (Do not round intermediate calculations. Round your answer to 2 decimal places. Negative value should be indicated by a minus sign.)