Answer Questions 1-12 for the given data set.

Q1. What is the 4-year geometric mean of the home countrys (US) interest rate? Q2. What is the 4-year geometric mean of the foreign countrys interest rate? Q3. What is the 4-year geometric mean of the home countrys (US) inflation rate? Q4. What is the 4-year geometric mean of the foreign countrys inflation rate? Q5. What is the 4-year geometric mean of percentage change in the foreign exchange Indirect Quote (in %)? Q6. What is the 4-year geometric mean of percentage change in the foreign exchange Direct Quote (in %)? Q7. Over the 4-year period, what should have been the annual percentage change in the FX direct quote according PPP? Q8: Over this 4-year period, did the FX Appreciate or Depreciate in "real terms"? Q9. Over this 4-year period, what was the annual percentage uncovered rate of return from the home countrys point of view (Ruh)? Q10. Over this 4-year period, what was the annual uncovered rate of return from the foreign countrys point of view (Ruf)? Q11. Over this 4-year period, you should have borrowed in the _________ country and invested in the _______ country Q12. If you had access to a $1,000,000 line of credit from your preferred borrowing country, over this 4-year period, your net profit from an uncovered interest rate arbitrage would have been _________.

Country

Year 1: Interest Rate

Year 2: Interest Rate

Year 3: Interest Rate

Year 4: Interest Rate

Year 1: Inflation Rate

Year 2: Inflation Rate

Year 3: Inflation Rate

Year 4: Inflation Rate

Year 1: % Change in IQ

Year 2: % Change in IQ

Year 3: % Change in IQ

Year 4: % Change in IQ

US	1.15	1.56	3.51	5.15	1.99	2.75	3.22	3.07	0.00	0.00	0.00	0.00
South Africa	10.66	7.53	6.91	7.34	5.79	6.53	5.45	6.27	-28.23	-14.61	-1.55	6.48