Hello,

Please help me with an assignment. I need answer only on 1 ( i, ii) question.

thanks

Investments 1 - FX Assignment (Version D) Worth 8% of Final Grade Due: See SLATE Assignment Box for due date and time. Submit assignment as a \"Word\" file in the Assignment box. Late assignment penalties: up to 24 hrs: 50%, 24 to 48 hrs: 75%, Thereafter mark is 0%. Work in Pairs and produce a single spaced report answering the following: 1) Go to the Yahoo website (https://ca.finance.yahoo.com/currencies/investing.html) Click the appropriate currency pair as required for the question. Remember, you can use the arrows highlighted in Yellow below to switch between a given currency pair and its reciprocal. Majors Tab: Asia Pacific Tab: Emerging Markets Tab: Canadian Dollar & British Pound (GBP) Singapore Dollar (SGD) South African Rand (ZAR) Under the graph that appears on the right, click \"View Interactive Chart\". At the bottom of the new graph click the \"5 Yr.\" button to get the FX rate for the past 5 years. If you hold your cursor on the graph, a week and associated FX rate will appear in the upper left corner of the graph. Use those FX rates for the following: DO NOT ROUND the FX rates. Use the complete figures provided in the chart. Get your FX rates ONLY from the above website. DO NOT use other sources. Show your calculations. i) Using October 29, 2012 as the starting date and July 7, 2014 as the end date, calculate the % change in the price of 1 USD in terms a (a) the Canadian Dollar and (b) the British Pound. In each case, state whether the USD appreciated or depreciated during this period. ii) Using October 29, 2012 as the starting date and July 7, 2014 as the end date, calculate the % change in (a) the Singapore Dollar and (b) the South African Rand in terms of the US Dollar. In each case, state whether the SGD or ZAR appreciated or depreciated during this period. 2) i) If a Canadian investor had purchased 1,000 shares of Coca-Cola in the week of October 29, 2012 at $92 US per share , how much money would she have made or lost in C$ terms if she sold the shares in the week of July 7, 2014 at $73 US per share, ignoring commissions and taxes? (find the C$ FX rates in the Yahoo charts noted above). ii) Of the total C$ gain or loss, how much was attributable to (a) the change in the value of Coke shares and (b) the change in the value of the Canadian Dollar? (Give your answer in C$ terms not % terms.) 3) 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 the person listed on the spreadsheet 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