Question: PROB SET 9) B+C+D I've provided the the index values, please assist on B + C + D 1. For each of the following countries,
PROB SET 9) B+C+D
I've provided the the index values, please assist on B + C + D
1. For each of the following countries, find and report the major stock market index values for March 2017 and March 2018 (in this exact order, please do not change): Switzerland (^SSMI), Mexico (^MXX), India (^BSESN), Japan (^N225), France (^FCHI). You can find these data at: http://finance.yahoo.com by entering the symbols above in parentheses for each country in the search box at the top of the page. Click on Historical Data and then select Monthly for Frequency and click on Apply. Get the Adjusted Close price (local currency) on the right side for March (01) 2017 and March (01) 2018. For the same countries, go to the St. Louis Fed at http://research.stlouisfed.org/fred2/categories/95 and find and report monthly ex-rates for March 2017 and March 2018 for each of the five countries above. Once you select and click on a currency, you can click on + more and then View All (upper left corner of screen next to the March 2018 ex-rate) to view the monthly exchange rates. You can also select the Download option (upper right corner of screen). Quote ex-rates with both currencies to four decimal places. Note: France uses the Euro as its currency.
a. For each country, report the stock index values and ex-rates for March 2017 and March 2018. + Answer
| Country | Index | Value as on 31st march 2017 | Value as on 31st march 2018 | Currency | Value as on 31st march 2017 | Value as on 31st march 2018 |
| Switzerland | (^SSMI) | 8,658.89 | 8,740.97 | CHF | 1.0031 | 0.9541 |
| Mexico | (^MXX) | 48,541.56 | 46,124.85 | MXN | 18.725 | 18.6 |
| India | (^BSESN) | 29,620.50 | 32,968.68 | INR | 64.86 | 65.115 |
| Japan | (^N225) | 18,909.26 | 21,454.30 | JPY | 111.39 | 106.28 |
| France | (^FCHI) | 5,122.51 | 5,167.30 | EUR | 0.9387 | 0.8115 |
b. Calculate the annual percentage return (%) for each stock market from March 2017 - March 2018, measured in local currency. Use the standard percentage change formula: [(P2 P1) / P1] x 100), or the %CHG function on your HP calculator and express the answers as a percent to two decimal places, e.g. 3.25%.
c. For each currency, calculate the annual percentage change (to two decimal places, e.g. 3.25%) from March 2017 to March 2018 using the ex-rate exactly as quoted (do not reverse the quote), and for each currency separately, clearly explain in a full sentence or two whether (and why) each of the foreign currencies appreciated or depreciated versus the dollar (use the standard percentage change formula or the %CHG function on your calculator, expressed as a percent).
d. Calculate the effective, annual US dollar return (% to two decimal places) for a U.S. investor who had invested money in the stock markets of each of the five countries during the last year (March 2017 March 2018), using the formula: Effective Dollar Return (%) = % Foreign Stock Market Return +/- % CHG (Appreciation/Depreciation) in the Foreign Currency
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