The following table lists monthly foreign exchange rates between the U.S. dollar and the Canadian dollar (in

Question:

The following table lists monthly foreign exchange rates between the U.S. dollar and the Canadian dollar (in $/US$) for 2011 (this is CANSIM II series V37426).

January .............................................. 0.993845
February ........................................... 0.987555
March ................................................ 0.976591
April ................................................... 0.958215
May .................................................... 0.967976
June ..................................................... 0.97675
July ......................................................... 0.9553
August .............................................. 0.982836
September ........................................... 1.0026
October ............................................ 1.019825
November ........................................ 1.025819
December ......................................... 1.023785

a. Which month would have been the best month to convert Canadian dollars into U.S. dollars? Which month would have been the worst?

b. Did the Canadian dollar appreciate or depreciate in 2011?

c. What was the percentage appreciation or depreciation of the Canadian dollar?

d. If you convert the monthly observations into an annual observation (by taking the arithmetic average), how representative will the annual observation be of the exchange rate during 2011?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...

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