A Brazilian investor buys 1,000 Qualcom shares on January 1st 2008 at $20 per share. The investor liquidates her position on January 1st, 2009 at $35. During the same period USD/BRL rate moved from BRL 2.62 to BRL2.19 per dollar. Calculate the returns of the Brazilian investor from her Qualcom investment in Brazilian Real (domestic currency) terms.
This solution illustrates how to compute an investor's foreign currency gain or loss.