Assume that you have invested $100,000 in Japanese equities. When purchased the stock's price and the exchange rate were ¥100 and ¥100/$1.00 respectively. At selling time, one year after purchase, they were ¥110 and ¥110/$1.00. At the purchase date you had sold ¥10,000,000 forward at the forward exchange rate of ¥108/$1.00. What is your dollar rate of return? The dollar rate of return would be: