Determine the total risk for the foreign portfolio

Reference no: EM131786828

Question: Calculate the correlation needed to determine the total risk for the foreign portfolio.

a. Write the excel formula used. Use the column/row indicators shown in Table 1.

b. Calculate and then bold/highlight the final solution.

c. Comment on whether the correlation is good or bad relative to domestic security correlations.

Table 1	Global Portfolio Data
Date	Lotos (PLN)	Lotos (USD)	Div.	ROPC_L	USD T-bond (%)	ROPC_b	FX = zl/$	FX = $/zl	ROPC_fx	ROPC_fp	Joint ROPC_gp
15-Sep	253.74	66.27			145.1406		3.8289	0.2612
22-Sep	271.43	71.03			145.4788		3.8214	0.2617
29-Sep	309.08	78.01			144.6211		3.9621	0.2524
6-Oct	273.64	67.92			142.7324		4.0289	0.2482
13-Oct	251.2	67.27			140.0375		3.7342	0.2678
20-Oct	220.57	61.02	zl3.187		139.0325		3.6147	0.2766
27-Oct	220.99	61.96			138.9878		3.5667	0.2804
3-Nov	229.65	63.91	$0.832		138.4261		3.5933	0.2783
10-Nov	271.02	64.85			139.9121		3.6209	0.2762
							Pip = 4
	Which one?						Which one?

Reference no: EM131786828

Questions Cloud

Libor at the last coupon reset for the bond : You have purchased $5, 000, 000 (par amount) of a floating rate bond that pays interest at a fixed spread of 80% above 6-month LIBOR.

Pays for the transisitors that are used in its mobile phone : Explain whether the following events will affect fixed costs or variable costs and please justify the answer

Create a two-way table with these two variables : Two-way Table from Data The first step in finding an association between gender and handedness among the students in to create a two-way table.

Prepare the journal entry dated october : Requirement 2: Prepare the journal entry dated October 31 to transfer the cost of the completed units to finished goods inventory

Determine the total risk for the foreign portfolio : Calculate the correlation needed to determine the total risk for the foreign portfolio.

Full time attendance costs three credits in terms of energy : Full time attendance "costs" three credits in terms of energy and time whereas random attendance "costs" only 1 credit.

Chinese balance of payments : ?The Wall Street journal recently reported that the Chinese central bank has decided to reduce its reserve holdings of U.S. government bonds.

Attitudes and actions in international trade : Integrate biblical insights into your thread. In what way does Scripture influence our attitudes and actions in international trade?

Safety systems of fukushima nuclear power plant : Compare NSSS systems including safety systems of Fukushima nuclear power plant unit 1 with those of APR1400.

User Account

All Pages