Show your calculations for each question below:Using Feb 23, 2020 as the starting date and March 27, 2022 as the end date, calculate the% changein theprice of 1...

Show your calculations for each question below:

1. 
   
   
   

   
   
   
   Using Feb 23, 2020 as the starting date and March 27, 2022 as the end date, calculate the
   
   
   
   
   % change
   
   
   
   
   
   in the
   
   
   
   
   price of 1 USD
   
   
   
   
   
   in terms of (a) the Canadian Dollar and (b) The EURO. In each case, state whether the USD appreciated or depreciated during this period.
   
   
   

   
   
   
   

2. 
   
   
   

   
   
   
   Using Feb 23, 2020 as the starting date and March 27, 2022 as the end date, calculate the
   
   
   
   
   % change
   
   
   
   
   
   in (a) the Swedish Krona in terms of US dollars and (b) the US Dollar in terms of Japanese Yen (JPY). In each case, state whether the SEK or US Dollar appreciated or depreciated during this period.
   
   
   

   
   
   
   

1. 
   
   
   

   
   
   
   i) If a Canadian investor had purchased 1,000 shares of Pepsi in the week of Feb 23, 2020 at $84 US per share , how much money would she have made or lost
   
   
   
   
   in C$
   
   
   
   
   
   terms if she sold the shares in the week of March 27, 2022 at $68 US per share, ignoring commissions and taxes? (use the C$ FX rates from question 1 above).
   
   
   

   
   
   
   

ii) Of the total C$ gain or loss, how much was attributable to (a) the change in the value of Pepsi shares and (b) the change in the value of the Canadian Dollar? (Give your answer in C$ terms not % terms.)

2. 
   
   
   

   
   
   
   Many investment advisors recommend diversifying investment portfolios by investing in foreign stocks and bonds. The purpose behind diversification is to reduce risk (ie. don’t put all your eggs in one basket). What are the implications of foreign exchange rate changes on the net return for such a strategy given what you’ve learned above?
   
   
   

   
   
   
   

IMPORTANT:







Put both names on your submission but only one person should submit the assignment.

Marking Scheme (Total marks = 12)

#1














i)(a) 1 (b) 1 ii) (a) 1 (b) 1

#2














i) 2 iia) 2 iib) 1

#3














3