1. Calculate the standard deviation of the percentage changes in the exchange rates for each of the four currencies.

- Clue: To do so, you will need to first to calculate year-over-year percentages changes for each currency using the 16 years of data. (You will have 15 year-over-year percentage changes for each currency.) Then, you will need to calculate the standard deviations of the percentage changes for each of the 4 currencies (use STDEV.S function in Excel).

\begin{tabular}{|l|l|l|l|l} BeginningofYear & AustralianDollar & CanadianDollar & NewZealandDollar & British Pound \\ \hline 1 & 1.2571 & 0.9839 & 1.0437 & 2.0235 \\ \hline 2 & 1.0864 & 0.9908 & 0.9500 & 1.7024 \\ \hline 3 & 1.1414 & 0.9137 & 1.0197 & 1.9060 \\ \hline 4 & 1.1505 & 0.8432 & 1.0666 & 2.0345 \\ \hline 5 & 1.1055 & 0.8561 & 0.9862 & 2.2240 \\ \hline 6 & 1.1807 & 0.8370 & 0.9623 & 2.3850 \\ \hline 7 & 1.1279 & 0.8432 & 0.8244 & 1.9080 \\ \hline 8 & 0.9806 & 0.8137 & 0.7325 & 1.6145 \\ \hline 9 & 0.9020 & 0.8038 & 0.6546 & 1.4506 \\ \hline 10 & 0.8278 & 0.7570 & 0.4776 & 1.1565 \\ \hline 11 & 0.6809 & 0.7153 & 0.4985 & 1.4445 \\ \hline 12 & 0.6648 & 0.7241 & 0.5235 & 1.4745 \\ \hline 13 & 0.7225 & 0.8130 & 0.6575 & 1.8715 \\ \hline 14 & 0.8555 & 0.8382 & 0.6283 & 1.8095 \\ \hline 15 & 0.7831 & 0.8518 & 0.5876 & 1.5772 \\ \hline 16 & 0.7671 & 0.8625 & 0.5985 & 1.9382 \end{tabular}