international financial management

Answer the following questions: Q1. Suppose you are a euro-based investor who just sold Google shares that you had bought three months ago. You had invested 11,000 euros to buy Google shares for $130 per share; the exchange rate was \$1.17 per euro. You sold the stock for \$137 per share and converted the dollar proceeds into euro at the exchange rate of $1.08 per euro. First, determine the profit from this investment in euro terms. Second, compute the rate of return on your investment in euro terms. How much of the return is due to the exchange rate movement? Q2. The stock market of country X has an expected return of 6 percent, and standard deviation of expected return of 9 percent. The stock market of country Y has an expected return of 16 percent and standard deviation of expected return of 11 percent. Find the expected return of a portfolio with 70% invested in X and the remaining invested in Y. Q3. We obtain the following data in dollar terms:- The correlation coefficient between the two markets is 0.6 . Suppose that you invest equally, i.e, 50% each, in the two markets. Determine the expected return and standard deviation risk of the resulting international portfolio. Q4. On the Tokyo Stock Exchange, Toyota Motor Company stock closed at 3100 per share on Monday, Nov. 6, 2023. Toyota trades as and ADR on the NYSE. One underlying Honda share equals one ADR. On Nov. 6,2023 , the Y/$ spot exchange rate was 110/$1.00. a. At this exchange rate, what is the no-arbitrage U.S. dollar price of one ADR? b. By comparison, Toyota ADRs traded at \$28.01. Do you think an arbitrage opportunity? Q5. The stock market of country X has an expected return of 6 percent, and standard deviation of expected return of 9 percent. The stock market of country Y has an expected return of 16 percent and standard deviation of expected return of 11 percent. Assume that the correlation of expected return between X and Y is negative 1. Calculate the standard deviation of expected return of the portfolio