Hi all,
I writing my thesis and I have to do the return calculation in domestic currency, because I need to compare some returns from our Stockexchange which is in HUF, with the chosen indices which are in USD. But I really don’t know how to do this, someone could help me with derive an example?
The USD return is the following: 0.002481108 = 0.25%
currency is: 327.62 HUF = 1 USD
I would really appreciate any helps!
Thanks!
To determine the return in USD you need to know the value of the investment (in USD) at the beginning of the investment period, and at the end of the investment period.
Similarly, to determine the currency return, you need to know the value of a USD in HUF at the beginning of the investment period, and at the end of the investment period.
How do I know these?
For example I choose 1000$ investment at the beginning. How should I know the investment in the end? I need daily datas
I totally lost.
When you make the initial investment, you’ll know its value (e.g., the $1,000 you mentioned), and you’ll know the HUF/USD exchange rate on that date. You won’t know the ending values, of course.
At the end of the investment, you’ll know its value (say, $1,002.50), and you’ll know the HUF/USD exchange rate on that date (e.g., 327.62).
What’s missing at the moment is the HUF/USD exchange rate when you made the initial investment. Do you have that number?