I need help with QUESTION 1 & 4 (IN RED)

I did all the calculation already, I just want to make sure I got the same answer for #1 and #4

Please use the attached sheets to answer the questions listed based on calculations using the data for the assigned country and the US during the assigned time period. Use geometric instead of arithmetic averages. Use exact instead of the approximate method. There is only one correct answer to these questions. You will be graded on whether or not your answers are correct Answer the following five question: Q1: During the assigned time period: US dollar appreciated / depreciated (choose one) in real terms against the currency of foreign country ??????????? Q2. During the assigned period, what was the average uncovered rate of return from the US viewpoint for the foreign country? L U CRR=return foreign + return due to currency 1 5 .31% Q3. During the assigned period, what was the average uncovered rate of return from the foreign country's viewpoint? UCRR=return foreign + return due to change in currency 3.6802% 104. Based on your answers to questions 2 and 3, given perfect hindsight about interest rates and exchange rate changes during the assigned time period you should have: Invested/ borrowed (choose one) in the US and invested / borrowed (choose one) in foreign country. ????????????? Q5. Assume that you could both borrow and invest at the average interest rates prevailing in foreign country and in the US during the assigned time period. Also assume that you have a line of credit for one million dollars in the US or an equivalent amount in foreign country. Given perfect hindsight about interest rates and exchange rate changes, please calculate your total profit in dollars using uncovered interest arbitrage during the assigned time period if you followed the strategy chosen in Q4. Use the geometric mean to calculated the return profit=1,000,000(1+UCRRus)^5-1,000,000(1+UCRRml)^5 | $ 294,931.43 Work Sheet: Statistical Report Country five-year time period 1995 1996 Inflation rate: US 2.8 2.9 Inflation Rate: Foreign country 1.7 1.4 Interest Rate: US 5.9 5.4 Interest Rate: Foreign country 2.6 2.9 % Change in CD SR ( Indirect quote) -7.2 -0.5 % Change in CD SR (Direct quote) [1/(1+% change in IQ)) -1 Singapore 1997 1998 1999 2.3 1.5 2.2 21-0.3 0 5.6 5.5 5.3 4.4 5 2 5.41 12.5l 1.4 2000 Geometric Ave 3.4 1.4 6.5 2.6 1.8| Work Sheet: Statistical Report Country Singapore five-year time period 1995 1996 1997 1998 1999 2000 Geometric Ave Inflation rate: US 0.028 0.029 0.023 0.0151 0.022 0.034 0.025 Inflation Rate: Foreign country 0.017| 0.014 0.020 -0.003 0.000 0.014 0.010 Interest Rate: US 0.059 0.054 0.056 0.055 0.053 0.065 0.057 Interest Rate: Foreign country 0.025 0.029 0.044 0.050] 0.020 0.026 0.032 % Change in CD SR ( Indirect quote) -0.072 -0.005 0.054 0.125 0.014 0.018 0.021 % Change in CD SR (Direct quote) 0.078 0.005 -0.051 -0.111 -0.014 -0.018 -0.020 [1/(1+% change in IQ)] -1 PPP Implications: Annual Uncovered Rate ( For US) Annual Uncovered rate ( For Malaysia) PPP Implications: Annual Uncovered Rate ( For US) 0.011 0.015 0.003 0.018 0.022 0.020 Annual Uncovered rate ( For Malaysia) -0.011 -0.015 -0.003 -0.018 -0.022 -0.019 Malaysia) 0.015 Use PPP-(1+home inflation)/(1+forighen inflation). -0.014 Suggest investment Strategy based on IFE: uggest investment Strategy based on IFE Put values into decimal for calculations