7. Suppose you are interested in investing in the stock markets of seven countries-that is, Australia, Canada, Germany, Japan, Switzerland, the United Kingdom, and the United States-the same seven countries that appear in Exhibit 15.10. Specifically, you would like to solve for the optimal (tangency) portfolio comprising the above seven stock markets. In solving the optimal portfolio, use the input data (i.e., correlation coefficients, means, and standard deviations) provided in Exhibit 15.4. The risk-free interest rate is assumed to be 0.3 percent per month and you can take a short position in any stock market. What are the optimal weights for each of the seven stock markets? What are the risk and return of the optimal portfolio? This problem can be solved using the MPTSolver.xls spreadsheet. Jeparese Yes (CME) Wh, 50,000 , 5 per 10% Canatian Dellar (CME) CAD 100,000; 5 per CAD JuneSept.75125.7550075350.7550075030.75260.75110.75265.00045.00045144,4583,190 British Pound (CME) 262,500 , 5 per & June 1.3182 Sept 1.3243 13245 1.3169 1.3238 132061326300430043 144,222 Swiss Frane (CMI) CHF 125,000, 5 per CHI June 10090101691.0181.0181100131.01591.00931.017900060006 73,541 Sept 42 Austrahan Dollar (CME):ALD 100,000; 5 per ALD June 2. Do problem 1 again assuming you have a long position in the futures contract. 3. Using the quotations in Exhibit 7.3, calculate the face value of the open interest in the September 2019 Swiss franc futures contract. 4. Using the quotations in Exhibit 7.3, note that the June 2019 Mexicahs peso futures contract has a price of 17. Daimler, a German carmaker, acquired Chrysler, the third largest U.S. automaker, for $40.5 billion in Page 444 1998. But after years of declining profit and labor problems, Daimler sold off Chrysler to the U.S. private equity firm Cerberus for $7.4 billion in 2007. Study the DaimlerChrysler saga and identify the main factors for the failure of this cross-border merger. 18. Lured by extremely low labor costs in Bangladesh, many MNCs in the so-called fast-fashion business, including H\&M, Inditex (parent of the popular Zara brand), Marks\&Spencer, and Gap, are heavily outsourcing to Bangladesh. As a result, the garment industry has become a major source of employment and income for Bangladesh. However, the industry has recently suffered a spate of disasters. In September 2012, about 110 workers died in a blaze at the Tazeen Fashions factory outside Dhaka, the capital city. What's worse, in April 2013, more than 1,100 workers perished in the collapse of the Rena Plaz building in Dhaka. In your opinion, (i) what are the root causes of the disasters? (ii) What should be done to prevent future disasters