ESSENTIALS OF INVESTMENTS>LL<+CONNECT
11th Edition
ISBN: 9781264001026
Author: Bodie
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 7, Problem 1WM
Summary Introduction
To show:
The data of company Alcoa and data of returns on S&P.
Expert Solution
Explanation of Solution
The data for returns of Alcoa is shown below:
| Date | Returns Alcoa |
| 12/1/2013 | 0 |
| 1/1/2014 | 0 |
| 2/1/2014 | 0.019785587 |
| 3/1/2014 | 0.094520691 |
| 4/1/2014 | 0.045565745 |
| 5/1/2014 | 0.010340052 |
| 6/1/2014 | 0.09213958 |
| 7/1/2014 | 0.09598186 |
| 8/1/2014 | 0.013333413 |
| 9/1/2014 | -0.029980428 |
| 10/1/2014 | 0.040797065 |
| 11/1/2014 | 0.031133233 |
| 12/1/2014 | -0.088938172 |
| 1/1/2015 | -0.008906032 |
| 2/1/2015 | -0.056519624 |
| 3/1/2015 | -0.133367024 |
| 4/1/2015 | 0.037969704 |
| 5/1/2015 | -0.071017427 |
| 6/1/2015 | -0.112097041 |
| 7/1/2015 | -0.121939527 |
| 8/1/2015 | -0.043485446 |
| 9/1/2015 | 0.025067099 |
| 10/1/2015 | -0.078577301 |
| 11/1/2015 | 0.047029033 |
| 12/1/2015 | 0.056257819 |
| 1/1/2016 | -0.302996218 |
| 2/1/2016 | 0.202912827 |
| 3/1/2016 | 0.074574737 |
| 4/1/2016 | 0.153553957 |
| 5/1/2016 | -0.18644828 |
| 6/1/2016 | 0.002902807 |
| 7/1/2016 | 0.135955619 |
| 8/1/2016 | -0.052185714 |
| 9/1/2016 | 0.008845955 |
| 10/1/2016 | -0.12794767 |
| 11/1/2016 | 0.301002453 |
| 12/1/2016 | -0.027282474 |
| 1/1/2017 | 0.260883907 |
| 2/1/2017 | -0.052376863 |
| 3/1/2017 | -0.005508 |
| 4/1/2017 | -0.019668973 |
| 5/1/2017 | -0.023699955 |
| 6/1/2017 | -0.008842777 |
| 7/1/2017 | 0.108723913 |
| 8/1/2017 | 0.186889829 |
| 9/1/2017 | 0.060570954 |
| 10/1/2017 | 0.024577509 |
| 11/1/2017 | -0.121820059 |
| 12/1/2017 | 0.241786656 |
| 1/1/2018 | -0.034945458 |
| 2/1/2018 | -0.145632637 |
| 3/1/2018 | -0.00022244 |
| 4/1/2018 | 0.129966368 |
| 5/1/2018 | -0.06308127 |
| 6/1/2018 | -0.025067115 |
| 7/1/2018 | -0.080131612 |
| 8/1/2018 | 0.031842536 |
| 9/1/2018 | -0.100472256 |
| 10/1/2018 | -0.143767471 |
| 11/1/2018 | -0.095281689 |
| 12/1/2018 | -0.098711084 |
| 12/7/2018 | 0 |
Summary Introduction
To show:
The data of returns on S&P.
Expert Solution
Explanation of Solution
The data for returns of S&P is shown below:
| Date | Returns S&P |
| 12/1/2013 | 0 |
| 1/1/2014 | 0 |
| 2/1/2014 | 0.042213375 |
| 3/1/2014 | 0.006908249 |
| 4/1/2014 | 0.006181643 |
| 5/1/2014 | 0.020812196 |
| 6/1/2014 | 0.018878997 |
| 7/1/2014 | -0.015194687 |
| 8/1/2014 | 0.036963644 |
| 9/1/2014 | -0.015635436 |
| 10/1/2014 | 0.022936399 |
| 11/1/2014 | 0.024237474 |
| 12/1/2014 | -0.004197385 |
| 1/1/2015 | -0.031532779 |
| 2/1/2015 | 0.053438876 |
| 3/1/2015 | -0.017549197 |
| 4/1/2015 | 0.008484722 |
| 5/1/2015 | 0.01043673 |
| 6/1/2015 | -0.021235559 |
| 7/1/2015 | 0.019549683 |
| 8/1/2015 | -0.064624731 |
| 9/1/2015 | -0.026798731 |
| 10/1/2015 | 0.079719379 |
| 11/1/2015 | 0.000504742 |
| 12/1/2015 | -0.017685659 |
| 1/1/2016 | -0.052067617 |
| 2/1/2016 | -0.004136906 |
| 3/1/2016 | 0.06390499 |
| 4/1/2016 | 0.002695762 |
| 5/1/2016 | 0.015208367 |
| 6/1/2016 | 0.000910506 |
| 7/1/2016 | 0.034990433 |
| 8/1/2016 | -0.001219987 |
| 9/1/2016 | -0.001235213 |
| 10/1/2016 | -0.019616837 |
| 11/1/2016 | 0.033603545 |
| 12/1/2016 | 0.018037111 |
| 1/1/2017 | 0.017726315 |
| 2/1/2017 | 0.036523001 |
| 3/1/2017 | -0.000389273 |
| 4/1/2017 | 0.009050132 |
| 5/1/2017 | 0.011509759 |
| 6/1/2017 | 0.004802226 |
| 7/1/2017 | 0.019164018 |
| 8/1/2017 | 0.000546284 |
| 9/1/2017 | 0.019119039 |
| 10/1/2017 | 0.02194556 |
| 11/1/2017 | 0.003713141 |
| 12/1/2017 | 0.033766015 |
| 1/1/2018 | 0.054657399 |
| 2/1/2018 | -0.039726108 |
| 3/1/2018 | -0.027252497 |
| 4/1/2018 | 0.002715086 |
| 5/1/2018 | 0.021378191 |
| 6/1/2018 | 0.004830749 |
| 7/1/2018 | 0.035387951 |
| 8/1/2018 | 0.029814315 |
| 9/1/2018 | 0.004285093 |
| 10/1/2018 | -0.071929346 |
| 11/1/2018 | 0.017701752 |
| 12/1/2018 | -0.047137951 |
| 12/7/2018 | 0 |
c
Summary Introduction
In this step we have to calculate the excess returns of the stock Alcoa and S&P separately.
c
Expert Solution
Explanation of Solution
The excess returns can be calculated by =
Excess return = Return on stock − T bill rate
Here is the sheet in which we have calculaed the excess returns:
| Date | Returns Alcoa | Returns S&P | T-Bill rate | Excess Return on Alcoa | Excess Return on S&P |
| 12/1/2013 | 0 | 0 | 0.07 | -0.07 | -0.07 |
| 1/1/2014 | 0 | 0 | 0.07 | -0.07 | -0.07 |
| 2/1/2014 | 0.019785587 | 0.042213375 | 0.04 | -0.02 | 0.00 |
| 3/1/2014 | 0.094520691 | 0.006908249 | 0.05 | 0.04 | -0.04 |
| 4/1/2014 | 0.045565745 | 0.006181643 | 0.05 | 0.00 | -0.04 |
| 5/1/2014 | 0.010340052 | 0.020812196 | 0.03 | -0.02 | -0.01 |
| 6/1/2014 | 0.09213958 | 0.018878997 | 0.03 | 0.06 | -0.01 |
| 7/1/2014 | 0.09598186 | -0.015194687 | 0.04 | 0.06 | -0.06 |
| 8/1/2014 | 0.013333413 | 0.036963644 | 0.03 | -0.02 | 0.01 |
| 9/1/2014 | -0.029980428 | -0.015635436 | 0.03 | -0.06 | -0.05 |
| 10/1/2014 | 0.040797065 | 0.022936399 | 0.02 | 0.02 | 0.00 |
| 11/1/2014 | 0.031133233 | 0.024237474 | 0.02 | 0.01 | 0.00 |
| 12/1/2014 | -0.088938172 | -0.004197385 | 0.02 | -0.11 | -0.02 |
| 1/1/2015 | -0.008906032 | -0.031532779 | 0.03 | -0.04 | -0.06 |
| 2/1/2015 | -0.056519624 | 0.053438876 | 0.03 | -0.09 | 0.02 |
| 3/1/2015 | -0.133367024 | -0.017549197 | 0.02 | -0.15 | -0.04 |
| 4/1/2015 | 0.037969704 | 0.008484722 | 0.03 | 0.01 | -0.02 |
| 5/1/2015 | -0.071017427 | 0.01043673 | 0.02 | -0.09 | -0.01 |
| 6/1/2015 | -0.112097041 | -0.021235559 | 0.02 | -0.13 | -0.04 |
| 7/1/2015 | -0.121939527 | 0.019549683 | 0.02 | -0.14 | 0.00 |
| 8/1/2015 | -0.043485446 | -0.064624731 | 0.03 | -0.07 | -0.09 |
| 9/1/2015 | 0.025067099 | -0.026798731 | 0.07 | -0.04 | -0.10 |
| 10/1/2015 | -0.078577301 | 0.079719379 | 0.02 | -0.10 | 0.06 |
| 11/1/2015 | 0.047029033 | 0.000504742 | 0.02 | 0.03 | -0.02 |
| 12/1/2015 | 0.056257819 | -0.017685659 | 0.12 | -0.06 | -0.14 |
| 1/1/2016 | -0.302996218 | -0.052067617 | 0.23 | -0.53 | -0.28 |
| 2/1/2016 | 0.202912827 | -0.004136906 | 0.26 | -0.06 | -0.26 |
| 3/1/2016 | 0.074574737 | 0.06390499 | 0.31 | -0.24 | -0.25 |
| 4/1/2016 | 0.153553957 | 0.002695762 | 0.29 | -0.14 | -0.29 |
| 5/1/2016 | -0.18644828 | 0.015208367 | 0.23 | -0.42 | -0.21 |
| 6/1/2016 | 0.002902807 | 0.000910506 | 0.27 | -0.27 | -0.27 |
| 7/1/2016 | 0.135955619 | 0.034990433 | 0.27 | -0.13 | -0.24 |
| 8/1/2016 | -0.052185714 | -0.001219987 | 0.30 | -0.35 | -0.30 |
| 9/1/2016 | 0.008845955 | -0.001235213 | 0.30 | -0.29 | -0.30 |
| 10/1/2016 | -0.12794767 | -0.019616837 | 0.29 | -0.42 | -0.31 |
| 11/1/2016 | 0.301002453 | 0.033603545 | 0.33 | -0.03 | -0.30 |
| 12/1/2016 | -0.027282474 | 0.018037111 | 0.45 | -0.48 | -0.43 |
| 1/1/2017 | 0.260883907 | 0.017726315 | 0.51 | -0.25 | -0.49 |
| 2/1/2017 | -0.052376863 | 0.036523001 | 0.51 | -0.56 | -0.47 |
| 3/1/2017 | -0.005508 | -0.000389273 | 0.52 | -0.53 | -0.52 |
| 4/1/2017 | -0.019668973 | 0.009050132 | 0.74 | -0.76 | -0.73 |
| 5/1/2017 | -0.023699955 | 0.011509759 | 0.80 | -0.82 | -0.79 |
| 6/1/2017 | -0.008842777 | 0.004802226 | 0.89 | -0.90 | -0.89 |
| 7/1/2017 | 0.108723913 | 0.019164018 | 0.98 | -0.87 | -0.96 |
| 8/1/2017 | 0.186889829 | 0.000546284 | 1.07 | -0.88 | -1.07 |
| 9/1/2017 | 0.060570954 | 0.019119039 | 1.01 | -0.95 | -0.99 |
| 10/1/2017 | 0.024577509 | 0.02194556 | 1.03 | -1.01 | -1.01 |
| 11/1/2017 | -0.121820059 | 0.003713141 | 1.07 | -1.19 | -1.07 |
| 12/1/2017 | 0.241786656 | 0.033766015 | 1.23 | -0.99 | -1.20 |
| 1/1/2018 | -0.034945458 | 0.054657399 | 1.32 | -1.35 | -1.27 |
| 2/1/2018 | -0.145632637 | -0.039726108 | 1.41 | -1.56 | -1.45 |
| 3/1/2018 | -0.00022244 | -0.027252497 | 1.57 | -1.57 | -1.60 |
| 4/1/2018 | 0.129966368 | 0.002715086 | 1.70 | -1.57 | -1.70 |
| 5/1/2018 | -0.06308127 | 0.021378191 | 1.76 | -1.82 | -1.74 |
| 6/1/2018 | -0.025067115 | 0.004830749 | 1.86 | -1.89 | -1.86 |
| 7/1/2018 | -0.080131612 | 0.035387951 | 1.90 | -1.98 | -1.86 |
| 8/1/2018 | 0.031842536 | 0.029814315 | 1.96 | -1.93 | -1.93 |
| 9/1/2018 | -0.100472256 | 0.004285093 | 2.03 | -2.13 | -2.03 |
| 10/1/2018 | -0.143767471 | -0.071929346 | 2.13 | -2.27 | -2.20 |
| 11/1/2018 | -0.095281689 | 0.017701752 | 2.25 | -2.35 | -2.23 |
| 12/1/2018 | -0.098711084 | -0.047137951 | 2.25 | -2.35 | -2.30 |
| 12/7/2018 | 0 | 0 | 2.25 | -2.25 | -2.25 |
d
Summary Introduction
We have to plot excess Alcoa return over excess S&P return.
d
Expert Solution
Explanation of Solution
We can use excel insert function to plot XY chart by selecting the data give above.
The plot will look like this.
Then we can also insert the trend line.
e
Summary Introduction
We have to find out the beta and alpha of Alcoa by looking at the trend line.
e
Expert Solution
Explanation of Solution
By looking at the trend line:
| Trend line is: | y = 0.0012 x + 51.382 | |
| Beta of Alcoa from the trend line = | 0.0012 | |
| And Alpha of Alcoa is : | 51.382 | |
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Suppose a corporation has two divisions with the different levels of risk. The Blank______ division would tend to have Blank______ returns.
Multiple choice question.
riskier; higher
riskier; lower
safer; higher
a. Refer to the table below and locate the E-Mini contract on the Standard & Poor's 500 Index. If the margin requirement is 10% of the
futures price times the multiplier of $50, how much must you deposit with your broker to buy one March contract?
Note: Round your answer to 2 decimal places.
Index Futures
Contract
Open
High
Low
Settle
Change
Open
Interest
Mini DJ Industrial Average (CBT)-$5 x index
December
30,711
38,818
30,254
30,860
March 23
30,905
31,821
30,485
30,680
-116
-115
68,458
767
Mini S&P see (CME)-$se x index
December
3759.75
SZOLLE
3676.75
3707.25
-25.50
March 23x
3791.25
3804-25
3707.75
3738.00
-25.50
2,288,063
43,134
Mini S&P Midcap 400 (CME)-$100 x index
December
2356.80
2368.40
2282.70
2306.40
-41-20
54.941
March 23x
2306.90
-41-20
Mini Nasdaq 100 (CME)-$20 x index
December
11328.25
11382.75
1049.00
11153.25
-45-50
269.975
March 23x
11437.00
11493.25
11167.00
11268.50
43.75
Mini Russell 2000 (CEM)-$50 x index
December
1771.90
1779.70
1712.70
1732.30
-29.60
March 23x…
Ryan Corporation expects to pay a dividend of $5 per share on its common stock at the end of thecurrent year. This dividend will then grow at 15% for the next 3 years, and after that the dividendswill continue to grow at a constant growth rate of 4% per year forever. If the company’s cost ofcommon stock is 14%, what is the price of Ryan’s stock today?Page 2 of 2
Chapter 7 Solutions
ESSENTIALS OF INVESTMENTS>LL<+CONNECT
Ch. 7 - Prob. 1PSCh. 7 - Consider the statement: “If we can identify a...Ch. 7 - Are the following true or false? Explain. (LO 7-5)...Ch. 7 - Here are data on two companies. The T-bill rate is...Ch. 7 - Characterize each company in the previous problem...Ch. 7 - What is the expected rate of return for a stock...Ch. 7 - Kaskin, Inc., stock has a beta of 1.2 and Quinn,...Ch. 7 - What must be the beta of a portfolio with E(rf)) =...Ch. 7 - The market price of a security is $40. Its...Ch. 7 - You arc a consultant to a large manufacturing...
Ch. 7 - Consider the following table, which gives a...Ch. 7 - Prob. 13PSCh. 7 - Prob. 14PSCh. 7 - If the simple CAPM is valid, which of the...Ch. 7 - Prob. 16PSCh. 7 - If the simple CAPM is valid, which of the...Ch. 7 - Prob. 18PSCh. 7 - Prob. 19PSCh. 7 - Prob. 20PSCh. 7 - In problem 2123 below, assume the risk-free rate...Ch. 7 - Prob. 22PSCh. 7 - In problem 2123 below, assume the risk-free rate...Ch. 7 - Two investment advisers are comparing performance....Ch. 7 - Suppose the yield on short-term government...Ch. 7 - Based on current dividend yields and expected...Ch. 7 - Consider the following data for a single index...Ch. 7 - Assume both portfolios A and B are well...Ch. 7 - Prob. 29PSCh. 7 - Prob. 30PSCh. 7 - Et
Ch. 7 - Suppose two factors are identified for the U.S....Ch. 7 - Suppose there are two independent economic...Ch. 7 - As a finance intern at Pork Products, Jennifer...Ch. 7 - Suppose the market can be described by the...Ch. 7 - Which of the following statements about the...Ch. 7 - Kay, a portfolio n1anacr at Collins Asset...Ch. 7 - Prob. 3CPCh. 7 - Jeffrey Bruner, CFA, uses the capital asset...Ch. 7 - Prob. 5CPCh. 7 - According to CAPM, the expected rate of a return...Ch. 7 - Prob. 7CPCh. 7 - Prob. 8CPCh. 7 - 9. Briefly explain whether investors should expect...Ch. 7 - Assume that both X and Y are well-diversified port...Ch. 7 - Prob. 11CPCh. 7 - 12. A zero-investment, well-diversified portfolio...Ch. 7 - 13. An investor takes as large a position as...Ch. 7 - In contrast to the capital asset pricing model,...Ch. 7 - Prob. 1WMCh. 7 - Prob. 2WMCh. 7 - Prob. 3WMCh. 7 - a. Which of the stocks would you classify as...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- 15-year maturity, 8% coupon bond paying coupons monthly is callable in 6 years at a callprice of $1,050. The bond currently sells at a yield to maturity of 11%.a. What is the yield to call?b. What is the yield to call if the call price is $1,100 and the bond can be called in 4 yearsinstead of 6 years?arrow_forwardSuppose you open a savings account with Hillside Bank, where you also have your salaryaccount. The bank will deduct $20 from your salary account every month and put it into thesavings account. The first deposit will take place immediately after you open the account. Ifyou are planning to maintain the account for the next 5 years, how much money will youhave when you close your account 5 years from now? Suppose the interest rate is 7% please show work.arrow_forwardProject Mean Green has an initial after-tax cost of $500,000. The project is expected to produceafter-tax CFs of $100,000 at the end of each year for the next five years and has a WACC of10%.There’s a 20% probability that the project’s growth opportunities will have an NPV of $3million at t=5, and a 80% probability that the NPV will be -1.2 million at t=5.Is it feasible for the company to expand the project after 5 years? plase show workarrow_forward
- Project panther has an initial after-tax cost of $150,000 at t=0. The project is expected toproduce after-tax cash flows of $60,000 for the next three years. The project’s WACC is 12%.The project’s CFs depend critically upon customer’s acceptance of the product. There’s a 50%probability that the product will be successful and generate annual after-tax CFs of $100,000,and a 50% probability that it will not be successful and hence produce annual after-tax CFs of-$10,000.Should the company abandon the project after a year?arrow_forwarda. A semi-annual bond with a face value of $1,000 has an annual coupon rate of 8%. If 23days have passed since the last coupon payment, how much will be the accrued interest onthe bond? What will be invoice price if the bond is selling at its par value?b. What will be the invoice price if the bond is a discount bond with a yield to maturity(YTM) of 9% and a maturity of 7 years? please show work.arrow_forwarda. Krannert Inc. issues a bond with a coupon rate of 7% and a YTM of 10%. If the bond isselling for $815.66, what is the maturity of the bond?b. How much would the bond be selling for if it was a quarterly bond with a maturity of 6years?arrow_forward
- Travis just won a lottery which gives him a choice between the following two paymentoptions:a. He will receive a one-time payment of $100,000 right now, ORb. He will receive $10,000 every year for the next 20 years.Which option Travis should go for? Suppose the interest rate is 5%. please show work.arrow_forwardProject Falcon has an upfront after-tax cost of $100,000. The project is expected to produceafter-tax cash flows of $35,000 at the end of each of the next four years. The project has aWACC of 11%.However, if the company waits a year, they will find out more information about marketcondition and its effect on the project’s expected after-tax cash flows. If they wait a year,• There’s a 60% chance that the market will be strong and the expected after-tax CFs willbe $45,000 a year for four years.• There’s a 40% chance that the market will be weak and the expected after-tax CFs willbe $25,000 a year for four years.• Project’s initial after-tax cost (at t=1) will still be $100,000.Should the company go ahead with the project today or wait for one more year? please show work.arrow_forwardMake a report on Human Resource Development Practices in Nepalese Private Sector Business Industries.arrow_forward
- Eccles Inc., a zero-growth firm, has an expected EBIT of $100.000 and a corporate tax rate of 30%. Eccles uses $500,000 of 12.0% debt, and the cost of equity to an unlevered firm in the same risk class is 16.0%. If the effective personal tax rates on debt income and stock income are Td = 25% and TS = 20% respectively, what is the value of the firm according to the Miller model (Based on the same unlevered firm value in the earlier question)? a. $475,875 b. $536,921 c. $587,750 d. $623,050 e. $564,167arrow_forwardRefer to the data for Eccles Inc. earlier. If the effective personal tax rates on debt income and stock income are Td = 25% and TS = 20% respectively, what is the value of the firm according to the Miller model (Based on the same unlevered firm value in the earlier question)? a. $475,875 b. $536,921 c. $587,750 d. $623,050 O $564,167arrow_forwardWarren Supply Inc. wants to use debt and common equity for its capital budget of $800,000 in the coming year, but it will not issue any new common stock. It is forecasting an EPS of $3.00 on its 500,000 outstanding shares of stock and is committed to maintaining a $2.00 dividend per share. Given these constraints, what percentage of the capital budget must be financed with debt? a. 33.84% b. 37.50% c. 32.15% d. 30.54% e. 35.63%arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Essentials Of InvestmentsFinanceISBN:9781260013924Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.Publisher:Mcgraw-hill Education,
Foundations Of FinanceFinanceISBN:9780134897264Author:KEOWN, Arthur J., Martin, John D., PETTY, J. WilliamPublisher:Pearson,
Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i...FinanceISBN:9780077861759Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan ProfessorPublisher:McGraw-Hill Education
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education
The Exchange Rate and the Foreign Exchange Market [AP Macroeconomics Explained]; Author: Heimler's History;https://www.youtube.com/watch?v=JsKLBpy6cEc;License: Standard Youtube License