Investing In France Stocks With US Dollars

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Question

You are a US who is considering investment in French (stocks A and B) and Swiss (stocks C and D) stock markets. The World market risk premium is 6%. The currency risk premium on the Swiss Franc (CHF) is 1.25% and the currency risk premium on the Euro (EUR) is 2%. The risk-free rate in the US is 3.75%. Given the information below the expected return on Stock A with the US dollar as the base currency is _________%.


Summary

The question belongs to Finance and it discusses about the expected return for investing in a stock in France by US dollars.

Total Word Count 174

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