Consider the following returns:
| Period |
United States |
United Kingdom |
Exchange Ratea |
|
1
|
10%
|
5%
|
$3
|
|
2
|
15%
|
-5%
|
2.5
|
|
3
|
-5%
|
15%
|
2.5
|
|
4
|
12%
|
8%
|
2.0
|
|
5
|
6%
|
10%
|
1.5
|
|
6
|
|
|
2.5
|
What is the average return in each market from the point of view of a U.S. investor and of a U.K. investor?