You are an American investor who invested in the Japanese Nikkei stock index a year ago. The nikkei index has risen by 25%.

You are an American investor who invested in the Japanese Nikkei stock index a year ago. The nikkei index has risen by 25%. In the meantime, the US dollar has appreciated by 25% against the Japanese yen. What is your rate of return (regarding your home currency, $) on this investment?

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