You invest 5m in mexicos equity markets at the spot rate of


1. You invest $5M in Mexico’s equity markets at the spot rate of MXP 20/$. After 1 year, the equity index returns 18% and the spot FX ratethen is MXP 23/$. What is our dollar-based return on investment?

2. You invest $5M in Mexico’s equity markets at the spot rate of MXP 20/$. After 1 year, the equity index returns 18% and the spot FX rate then is MXP 23/$. What is our dollar-based return on investment?

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Financial Management: You invest 5m in mexicos equity markets at the spot rate of
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