Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

based on the information below: Describe the data sources and the methodology you used to test UIP. Explain how you collected and analyzed data, and

based on the information below:

  • Describe the data sources and the methodology you used to test UIP.
  • Explain how you collected and analyzed data, and why you chose this approach.

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

IM NOT PAYING YOU ON A PLATFORM THAT ALREADY PAYS YOU.
\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline A & B & C & D & E & F & G & H & 1 & J & K \\ \hline 1 Jate & USD/CAD & USA Interest Rate & CAN Interest rate & Predicted exchange rate & Actual exchange rate & & & & & \\ \hline 1/1/04 & 1.3250 & 4.2742 & 4.5796 & 0.9971 & 1.0684 & & & & & \\ \hline 1/1/05 & 1.2402 & 4.2900 & 4.0669 & 1.0021 & 1.0891 & & & & & \\ \hline 1/1/06 & 1.1387 & 4.7917 & 4.2078 & 1.0056 & 0.9689 & & & & & \\ \hline 1/1/07 & 1.1752 & 4.6292 & 4.2698 & 1.0034 & 1.1737 & & & & & \\ \hline 1/1/08 & 1.0013 & 3.6667 & 3.6053 & 1.0006 & 0.8102 & & & & & \\ \hline 1/1/09 & 1.2359 & 3.2567 & 3.2306 & 1.0003 & 1.1572 & & & & & \\ \hline 1/1/10 & 1.0680 & 3.2142 & 3.2351 & 0.9998 & 1.0656 & & & & & \\ \hline 1/1/11 & 1.0023 & 2.7858 & 2.7830 & 1.0000 & 0.9999 & & & & & \\ \hline 1/1/12 & 1.0024 & 1.8025 & 1.8734 & 0.9993 & 1.0002 & & & & & \\ \hline 1/1/13 & 1.0022 & 2.3508 & 2.2620 & 1.0009 & 0.8984 & & & & & \\ \hline 1/1/14 & 1.1156 & 2.5408 & 2.2308 & 1.0030 & 0.8763 & & & & & \\ \hline 1/1/15 & 1.2731 & 2.1358 & 1.5217 & 1.0060 & 0.9108 & & & & & \\ \hline 1/1/16 & 1.3978 & 1.8417 & 1.2518 & 1.0058 & 1.0669 & & & & & \\ \hline 1/1/17 & 1.3102 & 2.3300 & 1.7837 & 1.0054 & 1.0621 & & & & & \\ \hline 1/1/18 & 1.2336 & 2.9100 & 2.2779 & 1.0062 & 0.9387 & & & & & \\ \hline 1/1/19 & 1.3141 & 2.1442 & 1.5889 & 1.0055 & 0.9947 & & & & & \\ \hline 1/1/20 & 1.3211 & 0.8942 & 0.7531 & 1.0014 & 1.0341 & & & & & \\ \hline 1/1/21 & 1.2776 & 1.4425 & 1.3588 & 1.0008 & 1.0013 & & & & & \\ \hline 1/1/22 & 1.2759 & & & & & & & & & \\ \hline 21 & & & & & & & & & & \\ \hline 22 & & & & & & & & & & \\ \hline 23 & & & & & & & & & & \\ \hline \end{tabular} Ready Accessibility: Good to go Actual Exchange Rate Change Histogram of Residuals [1] Standard Errors assume that the covariance matrix of the errors is correctly specified. Time Series of USD/CAD Exchange Rate Histogram of Residuals Actual Exchange Rate Change \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline A & B & C & D & E & F & G & H & 1 & J & K \\ \hline 1 Jate & USD/CAD & USA Interest Rate & CAN Interest rate & Predicted exchange rate & Actual exchange rate & & & & & \\ \hline 1/1/04 & 1.3250 & 4.2742 & 4.5796 & 0.9971 & 1.0684 & & & & & \\ \hline 1/1/05 & 1.2402 & 4.2900 & 4.0669 & 1.0021 & 1.0891 & & & & & \\ \hline 1/1/06 & 1.1387 & 4.7917 & 4.2078 & 1.0056 & 0.9689 & & & & & \\ \hline 1/1/07 & 1.1752 & 4.6292 & 4.2698 & 1.0034 & 1.1737 & & & & & \\ \hline 1/1/08 & 1.0013 & 3.6667 & 3.6053 & 1.0006 & 0.8102 & & & & & \\ \hline 1/1/09 & 1.2359 & 3.2567 & 3.2306 & 1.0003 & 1.1572 & & & & & \\ \hline 1/1/10 & 1.0680 & 3.2142 & 3.2351 & 0.9998 & 1.0656 & & & & & \\ \hline 1/1/11 & 1.0023 & 2.7858 & 2.7830 & 1.0000 & 0.9999 & & & & & \\ \hline 1/1/12 & 1.0024 & 1.8025 & 1.8734 & 0.9993 & 1.0002 & & & & & \\ \hline 1/1/13 & 1.0022 & 2.3508 & 2.2620 & 1.0009 & 0.8984 & & & & & \\ \hline 1/1/14 & 1.1156 & 2.5408 & 2.2308 & 1.0030 & 0.8763 & & & & & \\ \hline 1/1/15 & 1.2731 & 2.1358 & 1.5217 & 1.0060 & 0.9108 & & & & & \\ \hline 1/1/16 & 1.3978 & 1.8417 & 1.2518 & 1.0058 & 1.0669 & & & & & \\ \hline 1/1/17 & 1.3102 & 2.3300 & 1.7837 & 1.0054 & 1.0621 & & & & & \\ \hline 1/1/18 & 1.2336 & 2.9100 & 2.2779 & 1.0062 & 0.9387 & & & & & \\ \hline 1/1/19 & 1.3141 & 2.1442 & 1.5889 & 1.0055 & 0.9947 & & & & & \\ \hline 1/1/20 & 1.3211 & 0.8942 & 0.7531 & 1.0014 & 1.0341 & & & & & \\ \hline 1/1/21 & 1.2776 & 1.4425 & 1.3588 & 1.0008 & 1.0013 & & & & & \\ \hline 1/1/22 & 1.2759 & & & & & & & & & \\ \hline 21 & & & & & & & & & & \\ \hline 22 & & & & & & & & & & \\ \hline 23 & & & & & & & & & & \\ \hline \end{tabular} Ready Accessibility: Good to go Actual Exchange Rate Change Histogram of Residuals [1] Standard Errors assume that the covariance matrix of the errors is correctly specified. Time Series of USD/CAD Exchange Rate Histogram of Residuals Actual Exchange Rate Change

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Codes Of Finance

Authors: Vincent Antonin Lépinay

1st Edition

0691151504, 978-0691151502

More Books

Students also viewed these Finance questions

Question

Have I incorporated my research into my outline effectively?

Answered: 1 week ago