Recent Question/Assignment
The data given to you in the following table contains the average monthly returns and standard deviations for the S&P 500 index (in USD) and.. EAFE index (in Local currency and USD) for the period 1991 to 2012.
The correlation between S&P 500 and the EAFE (Local currency) over the entire period is 0.7927 (for local currency). The correlation between S&P 500 and the EAFE (USD) over the entire period is 0.7805. You are asked to present three computations:
(a) The currency effect of investing in these market indices over the entire period. (5 points)
(b) Risk and performance of the indices over the entire period. (5 points)
(c) Graphically depict the benefits the investor derives from investing in these market indices (S&P 500 and EAFE) assuming both are denominated in USD. You should show your workings. (5 points)
Formatting suggestion: This graph may be generated using a spreadsheet program or other software. If vou hand-draw the graph, take a picture of the graph and insert the gif jpeg file into your submission document before converting it into a PDF file.
Question 3: Table.
ffi__________
S&P 500 EAFE (Local Currency) EAFE (USD)
MEAN STD MEAN STD MEAN STD
1991 2.33% 4.56% 0.82% 4.61% 1.12% 5.34%
1992 0.63% 2.15% -0.45% 3.37% -0.96% 4.21%
1993 0.82% 1.75% 2.27% 4.51% 2.52% 5.15%
1994 0.15% 3.05% -0.09% 3.50% 0.71% 3.76%
1995 2.70% 1.50% 0.84% 3.42% 0.98% 3.69%
1996 1.78% 3.14% 0.96% 2.86% 0.54% 2.09%
1997 2.52% 4.60% 1.19% 4.73% 0.27% 4.65%
1998 2.30% 6.21% 1.17% 6.03% 1.71% 5.67%
1999 1.67% 3.7894 2.51% 3.5994 2.09% 3.65%
2000 -0.68% 4.95% -0.57% 2.92% -1.17% 3.92%
2001 -0.90% 5.73% -1.33% 4.98% -1.85% 4.94%
2002 -1.90% 5.96% -2.31% 5.69% -1.27% 5.48%
2003 2.17% 3.29% 1.66% 3.97% 2.87% 4.22%
2004 0.88% 2.11% 1.04% 1.67% 1.61% 2.73%
2005 0.42% 2.29% 2.22% 2.78% 1.14% 2.89%
2006 1.24% 1.63% 1.34% 2.61% 2.04% 2.70%
2007 0.48% 2.79% 0.35% 2.49% 0.96% 2.79%
2008 -3.60% 6.07% -3.94% 6.76% -4.28% 7.83%
2009 2.17% 6.43% 2.04% 5.60% 2.62% 7.43%
2010 1.32% 5.56% 0.52% 4.37% 0.86% 6.62%
2011 0.27% 4.60% -0.97% 3.85% -0.89% 5.64%
2012 1.29% 3.04% 1.44% 3.56% 1.49% 4.79%
MEAN: average monthly returns; STD: standard deviation of monthly returns
The correlation between S&P 500 and the EAFE (Local currency) over the entire period is 0.7927 (for local currency). The correlation between S&P 500 and the EAFE (USD) over the entire period is 0.7805. You are asked to present three computations:
(a) The currency effect of investing in these market indices over the entire period. (5 points)
(b) Risk and performance of the indices over the entire period. (5 points)
(c) Graphically depict the benefits the investor derives from investing in these market indices (S&P 500 and EAFE) assuming both are denominated in USD. You should show your workings. (5 points)
Formatting suggestion: This graph may be generated using a spreadsheet program or other software. If vou hand-draw the graph, take a picture of the graph and insert the gif jpeg file into your submission document before converting it into a PDF file.
Question 3: Table.
ffi__________
S&P 500 EAFE (Local Currency) EAFE (USD)
MEAN STD MEAN STD MEAN STD
1991 2.33% 4.56% 0.82% 4.61% 1.12% 5.34%
1992 0.63% 2.15% -0.45% 3.37% -0.96% 4.21%
1993 0.82% 1.75% 2.27% 4.51% 2.52% 5.15%
1994 0.15% 3.05% -0.09% 3.50% 0.71% 3.76%
1995 2.70% 1.50% 0.84% 3.42% 0.98% 3.69%
1996 1.78% 3.14% 0.96% 2.86% 0.54% 2.09%
1997 2.52% 4.60% 1.19% 4.73% 0.27% 4.65%
1998 2.30% 6.21% 1.17% 6.03% 1.71% 5.67%
1999 1.67% 3.7894 2.51% 3.5994 2.09% 3.65%
2000 -0.68% 4.95% -0.57% 2.92% -1.17% 3.92%
2001 -0.90% 5.73% -1.33% 4.98% -1.85% 4.94%
2002 -1.90% 5.96% -2.31% 5.69% -1.27% 5.48%
2003 2.17% 3.29% 1.66% 3.97% 2.87% 4.22%
2004 0.88% 2.11% 1.04% 1.67% 1.61% 2.73%
2005 0.42% 2.29% 2.22% 2.78% 1.14% 2.89%
2006 1.24% 1.63% 1.34% 2.61% 2.04% 2.70%
2007 0.48% 2.79% 0.35% 2.49% 0.96% 2.79%
2008 -3.60% 6.07% -3.94% 6.76% -4.28% 7.83%
2009 2.17% 6.43% 2.04% 5.60% 2.62% 7.43%
2010 1.32% 5.56% 0.52% 4.37% 0.86% 6.62%
2011 0.27% 4.60% -0.97% 3.85% -0.89% 5.64%
2012 1.29% 3.04% 1.44% 3.56% 1.49% 4.79%
MEAN: average monthly returns; STD: standard deviation of monthly returns
Looking for answers ?
Recent Questions
Assessment 2Assessment 2Report: 30%Word count: 1400 – 1600 wordsDue date: Sunday of Week 8DescriptionYou are playing the role of a community service worker supporting a young adult son who is 18 years...1500-1800 wordsInstructions From TutorPlease download the eTask3 spreadsheet from Canvas and save the eTask spread as an Excel file. The main content of the force method is taught in Lectures 6,7&8.eTask3.1 is a...ASSIGNMENT INSTRUCTIONSAssessment Practical assessmentAssessment code: 011Academic Year: 2023/2024Trimester: 2Module Title: Critical Perspectives on Cross-Border BusinessModule Code: MOD009194Level: 6Module...Information Systems Analysis & DesignAssignmentDue date: Week 5 Friday (5 Apr 2024) 11:59 pm AESTWeighting: 30%Length: 1,200 to 1,500 words (penalty will apply if the length is outside this limit)Assessment...Problem:University of Technology Sydney 48353: CONCRETE DESIGN Autumn 2024 - Assignment 2 (13 Marks)The figure illustrates the cross-section of a reinforced concrete column with a hexagonal shape (equal...Storytelling experience word :2000 (Folio)You will be planning a storytelling experience for preschool-aged children based on a nature-focused topic of learning, which integrates one philosophy and methodology...Show All Questions