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Unformatted text preview: i fc : rate of return in terms of a combined interest rate relative to foreign currency; f e : annual devaluation rate between US dollars and foreign currency, (positive f e means foreign currency is devalued) Effective interest rate i when number of compounding periods per year is M and annual nominal interest rate is r; i=(1+r/M) M-1 Conditional Probability Pr(A|B)=Pr(A and B )/Pr(B) =Pr(B|A)Pr(A)/Pr(B) Var(X)=E(X 2 )-E(X) 2...
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- Fall '12