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What is the rate of return to an american investor

Problem: An American investor buys 100 shares of London Enterprises at a price of £50 when the exchange rate is $1.60/£. A year later the shares are selling at £52. No dividends have been paid.

Q1. What is the rate of return to an American investor if the exchange rate is still $1.60/£?

Q2. What if the exchange rate is $1.70/£?

Q3. What if the exchange rate is $1.50/£?

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Finance Basics: What is the rate of return to an american investor

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