Problem
Romiana's Returns (A). Jennie Smith is a London- based investor. She has been closely following her investment in 1,000 shares of Romiana, an Italian firm that went public in February 2012. When she purchased her 1,000 shares at €20 per share, the euro was trading at £0.8375/€. Currently, the share is trading at €25.25 per share, and the exchange rate is £0.722/€.
1) If Jennie sells her shares today, what percentage change in the share price would she receive?
2) What is the percentage change in the value of the euro versus the pound over this same period?
3) What is the total return that Jennie would earn on her shares if she sold them at these rates?