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Refer to the following closing prices of USDTWC and XYZUSD. Compute for the corresponding %MTD change for currency XYZ against USD. Date USDTWC XYZUSD 12/31/2020 100.000 1/29/2021 2/1/2021 2/26/2021 1.800 1.650 1.600 1.250 1.200 1.300 97.800 97.400 96.200 3/1/2021 95.500 TODAY 94.750 XYZ appreciated against USD by 8.33% XYZ appreciated against USD by 4.00% XYZ depreciated against USD by 8.33% O XYZ depreciated against USD by 4.00%

Refer to the following closing prices of USDTWC and XYZUSD. Compute for the corresponding %MTD change for currency XYZ against USD. Date USDTWC XYZUSD 12/31/2020 100.000 1/29/2021 2/1/2021 2/26/2021 1.800 1.650 1.600 1.250 1.200 1.300 97.800 97.400 96.200 3/1/2021 95.500 TODAY 94.750 XYZ appreciated against USD by 8.33% XYZ appreciated against USD by 4.00% XYZ depreciated against USD by 8.33% O XYZ depreciated against USD by 4.00%

Essentials Of Investments
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
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Refer to the following closing prices of USDTWC and XYZUSD. Compute for the corresponding %MTD change for currency XYZ against USD. Date USDTWC XYZUSD 1.800 1.650 1.600 1.250 1.200 1.300 12/31/2020 100.000 1/29/2021 2/1/2021 97.800 97.400 2/26/2021 3/1/2021 96.200 95.500 TODAY 94.750 XYZ appreciated against USD by 8.33% O XYZ appreciated against USD by 4.00% O XYZ depreciated against USD by 8.33% O XYZ depreciated against USD by 4.00% ASSUMING ALL ELSE EQUAL - according to the survey conducted by the Bangko Sentral ng Pilipinas, 49 out of 56 Philippine-based banks expect that the PHP will remain strong against the USD until the end of the year. SOLELY BASED ON THIS INFORMATION, which of the following statement is accurate? O The PHP is already expensive, hence it is due for a correction in the medium-term. The PHP will continue to appreciate against USD given the positive market expectations on the currency. The PHP is not affected by survey results since it is the demand and the supply that determine its level. The survey results are invalid due to the sample being limited only to local banks.
Transcribed Image Text:Refer to the following closing prices of USDTWC and XYZUSD. Compute for the corresponding %MTD change for currency XYZ against USD. Date USDTWC XYZUSD 1.800 1.650 1.600 1.250 1.200 1.300 12/31/2020 100.000 1/29/2021 2/1/2021 97.800 97.400 2/26/2021 3/1/2021 96.200 95.500 TODAY 94.750 XYZ appreciated against USD by 8.33% O XYZ appreciated against USD by 4.00% O XYZ depreciated against USD by 8.33% O XYZ depreciated against USD by 4.00% ASSUMING ALL ELSE EQUAL - according to the survey conducted by the Bangko Sentral ng Pilipinas, 49 out of 56 Philippine-based banks expect that the PHP will remain strong against the USD until the end of the year. SOLELY BASED ON THIS INFORMATION, which of the following statement is accurate? O The PHP is already expensive, hence it is due for a correction in the medium-term. The PHP will continue to appreciate against USD given the positive market expectations on the currency. The PHP is not affected by survey results since it is the demand and the supply that determine its level. The survey results are invalid due to the sample being limited only to local banks.
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