Question
1. Share prices on the Philippine Stock Exchange rise 12 percent in Philippine pesos (PHP). During the same period the PHP rises in value from
1. Share prices on the Philippine Stock Exchange rise 12 percent in Philippine pesos (PHP). During the same period the PHP rises in value from USD 0.0425/PHP to USD 0.0440/PHP. By how much do share prices on the Philippine Stock exchange rise in terms of USD?
2. The stock market of country A has an expected return of 5 percent and standard deviation of 8 percent. The stock market of country B has an expected return of 15 percent and standard deviation of 10 percent. Assume that the covariance between A and B is 20. What percent of your portfolio should you invest in country A for the minimum variance portfolio?
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