Using Excel, calculate Index values given in local currency and adjust them into US values Calculate average monthly returns for both local currencies return and USD adjusted returns identifying what can be observed from these calculations Calculate the volatility of returns both in local currency terms as well as USD adjusted returns identifying observations Calculate pairwise correlations (in Excel) using USD returns correlating each market return with every other market return individually showing how these markets related or were unrelated to each other and why some markets were correlated to each more than others Exchange Rate (Foreign per USD) Index Values Australia China Japan U K Australia China Japan U K U S 12 30 94 1 2898 8 4662 99 6000 0 6384 1505 85 110 98 590 19 8599 66 953 04 01 31 95 1 3201 8 4584 99 4300 0 6323 1455 36 98 56 549 48 8375 34 980 01 02 28 95 1 3550 8 4511 96 6000 0 6313 1544 85 97 06 507 25 8410 73 1019 27 03 31 95 1 3652 8 4464 86 8500 0 6177 1539 75 113 69 496 49 8799 07 1047 99 04 28 95 1 3751 8 4274 84 0400 0 6215 1655 71 102 45 504 14 9036 2 1079 31 05 31 95 1 3908 8 3255 84 6500 0 6303 1640 28 118 88 476 07 9390 99 1119 75 06 30 95 1 4069 8 3211 84 7800 0 6287 1647 108 12 458 11 9390 91 1150 99 07 31 95 1 3537 8 3203 88 3400 0 6258 1726 84 122 97 510 14 9880 91 1193 44 08 31 95 1 3303 8 3298 97 7500 0 6445 1748 37 131 95 547 41 9956 58 1200 18 09 29 95 1 3236 8 3385 99 1000 0 6331 1750 68 134 03 554 45 10061 79 1253 11 10 31 95 1 3132 8 3349 102 2600 0 6326 1706 56 132 39 545 12 10055 92 1251 42 11 30 95 1 3470 8 3316 101 8000 0 6535 1787 35 117 93 569 68 10424 28 1304 22 12 29 95 1 3455 8 3374 103 2800 0 6437 1833 61 104 49 604 39 10563 79 1324 8 01 31 96 1 3435 8 3338 106 9500 0 6624 1902 45 103 50 616 59 10832 16 1367 59 02 29 96 1 3084 8 3411 105 1200 0 6527 1908 89 107 49 598 44 10841 23 1386 98 03 29 96 1 2796 8 3538 107 0000 0 6552 1861 95 109 20 626 68 10890 58 1400 27 04 30 96 1 2732 8 3501 104 6300 0 6645 1945 58 137 35 654 53 11345 36 1426 42 05 31 96 1 2531 8 3455 107 9900 0 6454 1912 15 143 77 642 76 11220 76 1464 63 06 28 96 1 2729 8 3421 109 4800 0 6440 1903 88 203 95 656 73 11113 78 1467 69 07 31 96 1 2928 8 3407 106 7700 0 6428 1858 28 210 21 611 13 11074 52 1401 23 08 30 96 1 2642 8 3363 108 7000 0 6405 1941 69 213 85 596 26 11612 28 1437 81 09 30 96 1 2639 8 3317 111 6500 0 6389 1970 74 233 06 628 75 11841 52 1523 45 10 31 96 1 2610 8 3300 113 7900 0 6143 2027 67 282 98 599 85 11964 33 1554 67 11 29 96 1 2290 8 3312 113 8800 0 5945 2073 49 280 16 606 67 12221 8 1667 25 12 31 96 1 2588 8 3284 115 7700 0 5840 2113 82 242 45 576 69 12436 5 1640 81 01 31 97 1 3115 8 3234 121 2500 0 6245 2119 11 251 59 541 28 12980 43 1739 75 02 28 97 1 2878 8 3254 120 8300 0 6140 2150 67 263 73 549 2 13148 96 1747 59 03 31 97 1 2755 8 3255 123 7200 0 6080 2134 67 318 15 544 2 13140 03 1674 62 04 30 97 1 2829 8 3245 127 0300 0 6173 2211 55 361 17 573 36 13440 71 1770 74 05 30 97 1 3106 8 3221 116 4000 0 6112 2330 87 349 75 594 82 13956 63 1886 63 06 30 97 1 3245 8 3207 114 6100 0 6006 2457 47 350 87 621 83 13902 03 1968 91 07 31 97 1 3421 8 2913 118 3700 0 6102 2481 23 326 00 622 81 14726 81 2130 34 08 29 97 1 3615 8 3184 120 6500 0 6172 2352 01 333 52 576 43 14601 21 2026 82 09 30 97 1 3793 8 3149 120 7100 0 6205 2529 14 304 02 564 59 15824 71 2140 79 10 31 97 1 4225 8 3134 120 3900 0 5957 2265 55 344 99 519 52 14827 68 2074 64 11 28 97 1 4652 8 3096 127 7400 0 5922 2285 61 331 92 513 41 14841 92 2167 65 12 31 97 1 5349 8 3100 130 4500 0 6088 2439 75 336 16 487 63 15732 57 2212 92 01 30 98 1 4594 8 3100 127 1000 0 6126 2480 37 339 85 522 2 16638 26 2238 96 02 27 98 1 4738 8 3100 126 1200 0 6078 2518 81 327 90 522 8 17675 42 2402 16 03 31 98 1 5122 8 2800 133 2900 0 5965 2585 75 335 20 515 57 18336 23 2528 6 04 30 98 1 5337 8 3100 132 3700 0 5978 2612 87 354 04 507 21 18418 96 2557 15 05 29 98 1 5974 8 3100 138 5000 0 6132 2578 4 359 89 507 06 18543 95 2496 87 06 30 98 1 6108 8 3100 138 2900 0 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7000 0 6170 3188 42 405 41 642 5 20176 69 3128 1 08 31 99 1 5674 8 2770 109 3000 0 6217 3118 31 404 04 634 78 20286 2 3103 66 09 30 99 1 5319 8 2778 106 8200 0 6076 3055 93 388 63 660 41 19542 5 3020 64 10 29 99 1 5684 8 2778 104 2900 0 6088 3066 89 367 01 691 27 20151 13 3215 58 11 30 99 1 5696 8 2789 101 8000 0 6275 3286 99 341 64 733 87 21459 85 3303 65 12 31 99 1 5244 8 2795 102 1600 0 6192 3385 46 325 88 771 44 22576 97 3527 26 01 31 00 1 5669 8 2777 107 3300 0 6180 3336 25 360 96 766 24 20695 34 3368 91 02 29 00 1 6247 8 2786 109 8800 0 6337 3330 88 397 88 779 07 20763 48 3353 2 03 31 00 1 6496 8 2787 102 7300 0 6281 3371 41 409 96 770 11 21778 08 3663 55 04 28 00 1 7132 8 2799 107 9800 0 6427 3352 72 425 12 741 48 21007 62 3475 1 05 31 00 1 7519 8 2773 107 7400 0 6681 3304 76 430 70 679 36 21153 05 3344 21 06 30 00 1 6748 8 2782 106 1400 0 6609 3530 6 439 32 710 34 21238 05 3492 05 07 31 00 1 7280 8 2792 109 6800 0 6674 3494 04 461 52 645 9 21472 21 3418 39 08 31 00 1 7349 8 2786 106 6600 0 6889 3517 02 444 58 674 06 22566 47 3671 09 09 29 00 1 8467 8 2798 107 9000 0 6763 3511 11 413 38 652 4 21432 95 3486 99 10 31 00 1 9301 8 2775 109 1500 0 6894 3482 23 414 49 611 25 21855 3422 78 11 30 00 1 9004 8 2777 110 9300 0 7037 3505 28 439 18 601 59 20987 23 3083 04 12 29 00 1 7986 8 2774 114 3500 0 6687 3450 07 426 68 566 34 21316 96 3117 4 01 31 01 1 8248 8 2781 116 3900 0 6843 3625 46 421 71 575 49 21681 1 3233 85 02 28 01 1 9055 8 2783 117 2800 0 6929 3598 65 398 91 548 86 20561 55 2914 45 03 30 01 2 0488 8 2777 125 5400 0 7047 3433 22 420 97 563 9 19506 55 2708 57 04 30 01 1 9623 8 2774 123 5700 0 6990 3626 89 413 48 600 83 20693 76 2938 72 05 31 01 1 9732 8 2770 118 8800 0 7055 3679 76 416 10 577 06 20313 33 2957 3 06 29 01 1 9608 8 2767 124 7300 0 7104 3766 35 416 21 570 77 19760 89 2895 27 07 31 01 1 9685 8 2770 125 0000 0 7017 3605 58 363 07 522 85 19357 59 2854 26 08 31 01 1 8950 8 2769 118 7500 0 6892 3552 55 345 53 483 83 18867 79 2675 99

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Question: Using Excel, calculate: - Index values given in local currency and adjust them into US values - Calculate average monthly returns for both local currencies

Using Excel, calculate:

- Index values given in local currency and adjust them into US values

- Calculate average monthly returns for both local currencies return and USD adjusted returns identifying what can be observed from these calculations

- Calculate the volatility of returns both in local currency terms as well as USD adjusted returns identifying observations

- Calculate pairwise correlations (in Excel) using USD returns correlating each market return with every other market return individually showing how these markets related or were unrelated to each other and why some markets were correlated to each more than others

	Exchange Rate (Foreign per USD)				Index Values
	Australia	China	Japan	U.K.	Australia	China	Japan	U.K.	U.S.
12/30/94	1.2898	8.4662	99.6000	0.6384	1505.85	110.98	590.19	8599.66	953.04
01/31/95	1.3201	8.4584	99.4300	0.6323	1455.36	98.56	549.48	8375.34	980.01
02/28/95	1.3550	8.4511	96.6000	0.6313	1544.85	97.06	507.25	8410.73	1019.27
03/31/95	1.3652	8.4464	86.8500	0.6177	1539.75	113.69	496.49	8799.07	1047.99
04/28/95	1.3751	8.4274	84.0400	0.6215	1655.71	102.45	504.14	9036.2	1079.31
05/31/95	1.3908	8.3255	84.6500	0.6303	1640.28	118.88	476.07	9390.99	1119.75
06/30/95	1.4069	8.3211	84.7800	0.6287	1647	108.12	458.11	9390.91	1150.99
07/31/95	1.3537	8.3203	88.3400	0.6258	1726.84	122.97	510.14	9880.91	1193.44
08/31/95	1.3303	8.3298	97.7500	0.6445	1748.37	131.95	547.41	9956.58	1200.18
09/29/95	1.3236	8.3385	99.1000	0.6331	1750.68	134.03	554.45	10061.79	1253.11
10/31/95	1.3132	8.3349	102.2600	0.6326	1706.56	132.39	545.12	10055.92	1251.42
11/30/95	1.3470	8.3316	101.8000	0.6535	1787.35	117.93	569.68	10424.28	1304.22
12/29/95	1.3455	8.3374	103.2800	0.6437	1833.61	104.49	604.39	10563.79	1324.8
01/31/96	1.3435	8.3338	106.9500	0.6624	1902.45	103.50	616.59	10832.16	1367.59
02/29/96	1.3084	8.3411	105.1200	0.6527	1908.89	107.49	598.44	10841.23	1386.98
03/29/96	1.2796	8.3538	107.0000	0.6552	1861.95	109.20	626.68	10890.58	1400.27
04/30/96	1.2732	8.3501	104.6300	0.6645	1945.58	137.35	654.53	11345.36	1426.42
05/31/96	1.2531	8.3455	107.9900	0.6454	1912.15	143.77	642.76	11220.76	1464.63
06/28/96	1.2729	8.3421	109.4800	0.6440	1903.88	203.95	656.73	11113.78	1467.69
07/31/96	1.2928	8.3407	106.7700	0.6428	1858.28	210.21	611.13	11074.52	1401.23
08/30/96	1.2642	8.3363	108.7000	0.6405	1941.69	213.85	596.26	11612.28	1437.81
09/30/96	1.2639	8.3317	111.6500	0.6389	1970.74	233.06	628.75	11841.52	1523.45
10/31/96	1.2610	8.3300	113.7900	0.6143	2027.67	282.98	599.85	11964.33	1554.67
11/29/96	1.2290	8.3312	113.8800	0.5945	2073.49	280.16	606.67	12221.8	1667.25
12/31/96	1.2588	8.3284	115.7700	0.5840	2113.82	242.45	576.69	12436.5	1640.81
01/31/97	1.3115	8.3234	121.2500	0.6245	2119.11	251.59	541.28	12980.43	1739.75
02/28/97	1.2878	8.3254	120.8300	0.6140	2150.67	263.73	549.2	13148.96	1747.59
03/31/97	1.2755	8.3255	123.7200	0.6080	2134.67	318.15	544.2	13140.03	1674.62
04/30/97	1.2829	8.3245	127.0300	0.6173	2211.55	361.17	573.36	13440.71	1770.74
05/30/97	1.3106	8.3221	116.4000	0.6112	2330.87	349.75	594.82	13956.63	1886.63
06/30/97	1.3245	8.3207	114.6100	0.6006	2457.47	350.87	621.83	13902.03	1968.91
07/31/97	1.3421	8.2913	118.3700	0.6102	2481.23	326.00	622.81	14726.81	2130.34
08/29/97	1.3615	8.3184	120.6500	0.6172	2352.01	333.52	576.43	14601.21	2026.82
09/30/97	1.3793	8.3149	120.7100	0.6205	2529.14	304.02	564.59	15824.71	2140.79
10/31/97	1.4225	8.3134	120.3900	0.5957	2265.55	344.99	519.52	14827.68	2074.64
11/28/97	1.4652	8.3096	127.7400	0.5922	2285.61	331.92	513.41	14841.92	2167.65
12/31/97	1.5349	8.3100	130.4500	0.6088	2439.75	336.16	487.63	15732.57	2212.92
01/30/98	1.4594	8.3100	127.1000	0.6126	2480.37	339.85	522.2	16638.26	2238.96
02/27/98	1.4738	8.3100	126.1200	0.6078	2518.81	327.90	522.8	17675.42	2402.16
03/31/98	1.5122	8.2800	133.2900	0.5965	2585.75	335.20	515.57	18336.23	2528.6
04/30/98	1.5337	8.3100	132.3700	0.5978	2612.87	354.04	507.21	18418.96	2557.15
05/29/98	1.5974	8.3100	138.5000	0.6132	2578.4	359.89	507.06	18543.95	2496.87
06/30/98	1.6108	8.3100	138.2900	0.5990	2521.5	328.28	511.11	18264.25	2607.8
07/31/98	1.6474	8.3100	144.6500	0.6117	2562.71	327.41	527.11	18293.38	2570.08
08/31/98	1.7483	8.3100	140.9000	0.5967	2380.06	283.00	463.2	16364.55	2190.76
09/30/98	1.6863	8.2780	136.5900	0.5884	2485.89	297.66	438.33	15777.42	2341.08
10/30/98	1.6000	8.2778	116.4500	0.5976	2649.84	287.12	433.58	16932.01	2531.76
11/30/98	1.5924	8.2782	123.2100	0.6066	2812.71	298.86	478.02	17812.43	2694.61
12/31/98	1.6332	8.2789	113.0800	0.6014	2890.03	279.27	456.86	18198.57	2876.82
01/29/99	1.5881	8.2778	116.0000	0.6076	3027.28	279.18	474.76	18391.75	2997.14
02/26/99	1.6116	8.2790	118.7000	0.6239	3004.44	268.42	475.69	19301.05	2899.72
03/31/99	1.5773	8.2800	118.4300	0.6196	3105.09	280.20	540.69	19835	3021.04
04/30/99	1.5106	8.2790	119.4300	0.6217	3227.08	275.18	572.65	20789.41	3153.01
05/31/99	1.5319	8.2786	120.8800	0.6242	3023.7	331.49	554.81	19866.17	3075.91
06/30/99	1.5126	8.2787	120.9400	0.6343	3145.41	444.55	613.51	20289.81	3232.3
07/30/99	1.5333	8.2774	114.7000	0.6170	3188.42	405.41	642.5	20176.69	3128.1
08/31/99	1.5674	8.2770	109.3000	0.6217	3118.31	404.04	634.78	20286.2	3103.66
09/30/99	1.5319	8.2778	106.8200	0.6076	3055.93	388.63	660.41	19542.5	3020.64
10/29/99	1.5684	8.2778	104.2900	0.6088	3066.89	367.01	691.27	20151.13	3215.58
11/30/99	1.5696	8.2789	101.8000	0.6275	3286.99	341.64	733.87	21459.85	3303.65
12/31/99	1.5244	8.2795	102.1600	0.6192	3385.46	325.88	771.44	22576.97	3527.26
01/31/00	1.5669	8.2777	107.3300	0.6180	3336.25	360.96	766.24	20695.34	3368.91
02/29/00	1.6247	8.2786	109.8800	0.6337	3330.88	397.88	779.07	20763.48	3353.2
03/31/00	1.6496	8.2787	102.7300	0.6281	3371.41	409.96	770.11	21778.08	3663.55
04/28/00	1.7132	8.2799	107.9800	0.6427	3352.72	425.12	741.48	21007.62	3475.1
05/31/00	1.7519	8.2773	107.7400	0.6681	3304.76	430.70	679.36	21153.05	3344.21
06/30/00	1.6748	8.2782	106.1400	0.6609	3530.6	439.32	710.34	21238.05	3492.05
07/31/00	1.7280	8.2792	109.6800	0.6674	3494.04	461.52	645.9	21472.21	3418.39
08/31/00	1.7349	8.2786	106.6600	0.6889	3517.02	444.58	674.06	22566.47	3671.09
09/29/00	1.8467	8.2798	107.9000	0.6763	3511.11	413.38	652.4	21432.95	3486.99
10/31/00	1.9301	8.2775	109.1500	0.6894	3482.23	414.49	611.25	21855	3422.78
11/30/00	1.9004	8.2777	110.9300	0.7037	3505.28	439.18	601.59	20987.23	3083.04
12/29/00	1.7986	8.2774	114.3500	0.6687	3450.07	426.68	566.34	21316.96	3117.4
01/31/01	1.8248	8.2781	116.3900	0.6843	3625.46	421.71	575.49	21681.1	3233.85
02/28/01	1.9055	8.2783	117.2800	0.6929	3598.65	398.91	548.86	20561.55	2914.45
03/30/01	2.0488	8.2777	125.5400	0.7047	3433.22	420.97	563.9	19506.55	2708.57
04/30/01	1.9623	8.2774	123.5700	0.6990	3626.89	413.48	600.83	20693.76	2938.72
05/31/01	1.9732	8.2770	118.8800	0.7055	3679.76	416.10	577.06	20313.33	2957.3
06/29/01	1.9608	8.2767	124.7300	0.7104	3766.35	416.21	570.77	19760.89	2895.27
07/31/01	1.9685	8.2770	125.0000	0.7017	3605.58	363.07	522.85	19357.59	2854.26
08/31/01	1.8950	8.2769	118.7500	0.6892	3552.55	345.53	483.83	18867.79	2675.99

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