Compute the real exchange rate

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1. If price index in Kenya and Uganda rise from 100 in 2014 to 120 and 110 respectively in 2015 but the nominal exchange rate between the two currencies between the two dates remains at Ugx. 1/ Kes. 0.05. Compute the real exchange rate for Kenya shillings against the uganda shillings in 2015.

2. If you own 240 shares of Air Line Inc at $18.65, 140 shares of BuyRite at $9.6, and 340 shares of Motor City at $45.65, what are the portfolio weights of each stock?

Reference no: EM131924660

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