Problem 16.1 The Baltic Sea
Assume the U.S. dollar returns (monthly averages) shown below for the three Baltic republics. Calculate the Sharpe and Treynor
measures of market performance.
Problem 8.1 Amber McClain
Amber McClain, the currency speculator we met earlier in the chapter,sells eight June futures contracts for
500,000 pesos at the closing price quoted in Exhibit 8.1.
a. What is the value of her position at maturity if the ending
Problem 13.5 Kashmiri's Cost of Capital
Kashmiri is the largest and most successful specialty goods company based in Bangalore, India. It has not entered the North America
marketplace yet, but is considering establishing both manufacturing and distributio
Problem 6.8 Forward Premiums on the Dollar/Euro ($/)
Use the following spot and forward bid-ask rates for the U.S. dollar/euro (US$/) exchange rate from December 10, 2010, to answer
China's (Mainland) Balance of Payments
Use the following Chinese (Mainland) balance of payments data from the IMF to answer questions 15 through 18.
Is China experiencing a net capital inflow or outflow?
What is China's Total for Group
Problems 1-5 illustrate an example of trade induced by comparative advantage. They assume that China and France each have
1,000 production units. With one unit of production (a mix of land, labor, capital, and technology), China can