Get the historical exchange rate data from 2004-2007 on the Malaysian Ringgit against any Singapore Dollar and Japanese Yen in the world by visiting http://www.oanda.com/convert/fxhistory or some other website. Calculate the correlation between these 2 exchange rates over this period.

2. Choose any 4 US listed stocks, and get their beta as listed under the Key Statistics section of Yahoo! Finance. Compute the expected return on an equally weighted portfolio of the 4 stocks as predicted by the Capital Asset Pricing Model (CAPM) using the current 3-month Treasury bill rate as the risk-free rate and the return on the S&P500 index from the past 10 years as the market return. To calculate market portfolio return, you need to solve for R, in the following equation:

S&P -10 (1+R)^10 = S&P now

(Hint: You need to calculate the portfolio beta).