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If the Chilean Peso investment had 0% return and you sold that and decided to bring the money back in dollars you would lose 10.25% of your original investment in dollar terms.
Update: @mfs is correct. I made a mistake. You gain 11.42%
In Nov 2011, you bought 527,000 pesos. Today, you sell those pesos, and for every 473 pesos, you get $1. We can add that up: 473 pesos = $1 + 473 pesos = $1 + 473 pesos = $1 ... --------------- 526,922 pesos = $1114 dollars, and you've still got 78 pesos in your pocket.
That is, 527,000 pesos * $1/473 pesos = $(527,000/473) = $1,114. 165. The peso rose in value relative to the dollar (it takes fewer pesos to buy a dollar now than last November), so your holding increased in value along with the peso.
Comments
Update: @mfs is correct. I made a mistake. You gain 11.42%
Investor,
Thanks.
Mona
In Nov 2011, you bought 527,000 pesos. Today, you sell those pesos, and for every 473 pesos, you get $1. We can add that up:
473 pesos = $1
+ 473 pesos = $1
+ 473 pesos = $1
...
---------------
526,922 pesos = $1114 dollars, and you've still got 78 pesos in your pocket.
That is, 527,000 pesos * $1/473 pesos = $(527,000/473) = $1,114. 165. The peso rose in value relative to the dollar (it takes fewer pesos to buy a dollar now than last November), so your holding increased in value along with the peso.