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?