WUT T yURT VWL U werd. o - (Data query on exchange rates) Download the exchange rate data for the following currencies against the US dollar (country currency per dollar): Canada, Mexico, China (i.e., FX Canada-US, Mxico-US, China-US). You can find these data at the St. Louis Fed Federal Reserve Economics Database (FRED) database: https://fred.stlouisfed.org/. The data should be monthly and cover the January 1994-December 2021 period ! (a) Compute the annual growth rates (depreciation rate) for each case. Report the standard deviation of each exchange rate. Report the correlation coefficient for each exchange rate pair (Canada-US vs. Mxico-US, Canada-US vs. China-US, and Mxico-US vs. China-US). 2 (b) Briefly, summarize the results you found in (a.). Why would the volatilities be different across rates? [Hint: think about the exchange rate regimes in these locations] (c) Plot the depreciation rates you found in (a). Put the three in the same graph and include labels. Note: you will usually find the "country currency per dollar" rates. That is because each country's central bank publishes the exchange rate and they do it in the typical home per foreign currency units we saw in class. The only difference is that, from their perspective, the home currency is their currency and the foreign currency is the US dollar. Thus: (1) that's why the data you found in. FRED is given in other currencies per dollar, (2) you can always get the dollar price per foreign currency by taking 1/X where X is the currency quoted in foreign currency per dollar