1. Measuring movements in exchange rates The following table shows hypothetical monthly exchange rates for the Canadian dollar and the euro, as well as the standard deviation of the percentage changes for each currency. Use the table to select the percent change from March 1 to April 1 in the Canadian dollar exchange rate and the euro exchange rate. Value of the Canadian Dollar (US Dollars per Canadian Dollar) Monthly Percent Change in Canadian Dollar Value Value of Euro (US Dollars per euro) $1.14 Monthly Percent Change in Euro Value $0.62 0.63 1.16 1.75% 1.61% 1.59% 0.64 1.18 1.72% Month January 1 February 1 March 1 April 1 May 1 June 1 July 1 Standard Deviation 0.66 1.15 0.67 1.52% 1.13 -1.74% 0.65 -2.99% 1.15 1.77% 0.66 1.16 0.87% 1.54% 2.08% 1.94% The percentage change in the Canadian dollar from March 1 to April 1 represents a depreciation in the value of the Canadian dollar. In this example, the value of the Canadian dollar was more volatile over the entire time period