please answer both rating will be given, much appreciated 1 Currencies U S dollar foreign exchange rates May 5, 2011 Country currency in US$ per US$ British Pound1 53470 6516 Norwegian Kroner 0 16905 9173 Thai Baht 0 031032 250 Suppose a Big Mac costs $3 27 in Boston, and 101 Thai Baht in Thailand In this circumstance, what can we say is TRUE a Purchasing Power Parity does not hold, and Big Macs are relatively expensive in Thailand b Purchasing Power Parity holds, and Big Macs are relatively expensive in Thailand c Purchasing Power Parity holds, and Big Macs are relatively cheap in Thailand d Purchasing Power Parity holds, and Big Macs cost the same in these two cities e Purchasing Power Parity does not hold, and Big Macs are relatively cheap in Thailand 2 A portfolio is formed with 50 of your money in Stock 1 and 50 of your money in stock 2 Stock 1 has a standard deviation of 0 03, and stock 2 has a standard deviation of 0 075 Which comes closest to the portfolio variance if the covariance between Stock 1 and Stock 2 is 0 005 a 0 0009 b 0 011 c 0 002 d 0 0002 e 0 005

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Question: please answer both!!! rating will be given, much appreciated 1- Currencies U.S. dollar foreign-exchange rates. May 5, 2011 Country/currency.in US$............per US$ British Pound1.53470.6516 Norwegian Kroner...0.16905.9173

please answer both!!! rating will be given, much appreciated

1- Currencies U.S. dollar foreign-exchange rates. May 5, 2011

Country/currency.in US$............per US$

British Pound1.53470.6516

Norwegian Kroner...0.16905.9173

Thai Baht..0.031032.250

Suppose a Big Mac costs $3.27 in Boston, and 101 Thai Baht in Thailand. In this circumstance, what can we say is TRUE?

	a.	Purchasing Power Parity does not hold, and Big Macs are relatively expensive in Thailand
	b.	Purchasing Power Parity holds, and Big Macs are relatively expensive in Thailand
	c.	Purchasing Power Parity holds, and Big Macs are relatively cheap in Thailand
	d.	Purchasing Power Parity holds, and Big Macs cost the same in these two cities
	e.	Purchasing Power Parity does not hold, and Big Macs are relatively cheap in Thailand

2- A portfolio is formed with 50% of your money in Stock 1 and 50% of your money in stock 2. Stock 1 has a standard deviation of 0.03, and stock 2 has a standard deviation of 0.075. Which comes closest to the portfolio variance if the covariance between Stock 1 and Stock 2 is -0.005?

	a.	-0.0009
	b.	-0.011
	c.	-0.002
	d.	-0.0002
	e.	-0.005

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