1. Measuring movements in exchange rates The following table shows hypothetical monthly exchange rates for the Canadian dollar and the euro, as well as the standard deviation of the percentage changes for each currency. Use the table to select the percent change from March 1 to April 1 in the Canadian dollar exchange rate and the euro exchange rate. Value of the Canadian Dollar Month January 1 February 1 March 1 April 1 May 1 June 1 July 1 Standard Deviation (US Dollars per Canadian Dollar) $0.62 0.63 0.64 0.66 0.67 0.65 0.66 In this example, the value of the Monthly Percent Change in Canadian Dollar Value 1.61% 1.59% 1.52% -2.99% 1.54% 2.08% The percentage change in the Canadian dollar from March 1 to April 1 represents Value of Euro (US Dollars per euro) $1.14 1.16 1.18 1.15 1.13 1.15 1.16 a depreciation no change an appreciation was more volatile over the entire time period. Monthly Percent Change in Euro Value 1.75% 1.72% -1.74% 1.77% 0.87% 1.94% in the value of the Canadian dollar.
1. Measuring movements in exchange rates The following table shows hypothetical monthly exchange rates for the Canadian dollar and the euro, as well as the standard deviation of the percentage changes for each currency. Use the table to select the percent change from March 1 to April 1 in the Canadian dollar exchange rate and the euro exchange rate. Value of the Canadian Dollar Month January 1 February 1 March 1 April 1 May 1 June 1 July 1 Standard Deviation (US Dollars per Canadian Dollar) $0.62 0.63 0.64 0.66 0.67 0.65 0.66 In this example, the value of the Monthly Percent Change in Canadian Dollar Value 1.61% 1.59% 1.52% -2.99% 1.54% 2.08% The percentage change in the Canadian dollar from March 1 to April 1 represents Value of Euro (US Dollars per euro) $1.14 1.16 1.18 1.15 1.13 1.15 1.16 a depreciation no change an appreciation was more volatile over the entire time period. Monthly Percent Change in Euro Value 1.75% 1.72% -1.74% 1.77% 0.87% 1.94% in the value of the Canadian dollar.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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