Question 1: Consider the questions below

1. Assume you are a trader with Citi Bank. The Singapore dollar?U.S. dollar (SGD/$) spot exchange rate is SGD1.60/$, the Canadian dollar?U.S. dollar (CD/$) spot rate is CD1.33/$, and the (SGD/CD) spot rate is SGD1.15/CD. Show how you can make a triangular arbitrage profit by trading at these prices. Ignore the bid-ask spreads for this problem. Assume that you have $1,000,000 with which to conduct the arbitrage.

2. A global equity manager, Jane, is assigned to select stocks from a universe of large stocks throughout the world. The manager will be evaluated by comparing her returns to the return on the MSCI World Market Portfolio, but she is free to hold stocks from various countries in whatever proportions she finds desirable. The results for a given month are shown in the following table.

Manager's Return in Country Manager's Weight Weight in MSCI Index Return of Stock Index for that Country

US 2% 70% 60% 2.5%

Japan 1% 20% 30% 1.2%

UK 0.5% 10% 10% 0.5%

a) What was the contribution by her country allocation decisions to relative performance? What was the contribution of her stock selection ability within countries?

b) What was the manager's return in the month? What was her over-performance or underperformance?

3. Assume that you can borrow as much as $100,000,000 to invest for six months. Currently, the spot exchange rate is ?1.01 per dollar and the six-month forward exchange rate is ?0.99 per dollar. The interest rate is 8.0% per annum in the U.S. and 7% per annum in the Euro Zone. How would you carry out covered interest arbitrage? Show all the steps and determine the arbitrage profit.

4. Suppose that your firm is operating in a segmented capital market. What actions would you recommend to mitigate the negative effects?

5.Suppose you are a euro-based investor who just sold Amazon shares that you had bought a year ago. You had invested 10,000 euros to buy Amazon shares for $120 per share; the exchange rate was $1.15 per euro. You sold the stock for $135 per share and converted the dollar proceeds into euro at the exchange rate of $1.06 per euro.

a) How much is the profit from this investment in euro terms? Compute the rate of return on your investment in euro terms.

b) How much of the return is due to the exchange rate movement?

Questions 2: Answer all questions below

LONG-TERM ASSETS 121 REQUIRED Income statement questions: 1. Are total revenues higher or lower over the three-year period? 2. What is the percent change in total revenues from 2007 to 2009? 3. Is the percent of cost of goods sold to total revenues increasing or decreasing over the three- year period? As a result, is the gross margin percent increasing or decreasing" 4. Is the percent of total operating expenses to total revenues increasing or decreasing over the three-year period? As a result, is the operating income percent increasing or decreasing? 5. Is the percent of net income to total revenue increasing or decreasing over the three-year period? Balance sheet questions: 6. Are total assets higher or lower over the three-year period? 7. What is the percent change in total assets from 2007 to 2009? 8. What are the largest asset investments for the company over the three-year period? 9. Are the inventories increasing faster or slower than the percent change in total revenues? 10. Is the percent of total liabilities to total liabilities + owners' equity increasing or decreasing? As a result, is there more or less risk that the company could not pay its debts? Integrative income statement and balance sheet question: 1 1. Is the company operating more or less efficiently by using the least amount of asset investment to generate a given level of total revenues? Note that the "total asset turnover" ratio is computed and included in the "ratio analysis summary". Ratio analysis questions: 12. Is the current ratio better or worse in the most current year compared to prior years? 13. Is the quick ratio better or worse in the most current year compared to prior years? 14. Is the accounts receivable turnover ratio I (based on average receivables) better or worse in the most current year compared to prior years? 15. Is the 2009 accounts receivable turnover ratio 2 (based on year-end receivables) better or worse than the 2009 ratio based on an average? 16. Is the inventory turnover ratio I (based on average inventory) better or worse in the most current year compared to prior years? 17. Is the 2009 inventory turnover ratio 2 (based on year-end inventory) better or worse than the 2009 ratio based on an average? 18. Is the return on total assets (ROA) ratio better or worse in the most current year compared to prior years?Find the fundamental solutions to the following equation (i.e., the solutions that are between ()" and 360" ). Give your answers in degrees. 26 sec*(0) - 14 tan (0)sec(0) - 24 = 0 Please list your fundamental solutions in ascending order (smallest first ). Fundamental solution #1: Fundamental solution #2: Fundamental solution #3: Fundamental solution #4: Question Help: B Read Submit QuestionQuestion 6 10 pts Which of the following statements regarding the balance sheet is INCORRECT? if\" The balance sheet reports long-term debt on the right-hand side. If\" The balance sheet reports the market values of assets, liabilities, and shareholders' equity. f\" The balance sheet provides a snapshot of a rm's nancial position at a given point in time. 5\"\" The balance sheet reports stockholders' equity on the right- hand side. QUESTION 15 which of the following counts as US GDP? 50 Boeing 737 produced in Seattle and sold to Chinese airline Air China 5000 Focus produced by a Ford company in Beijing, China O 10,000 bottles of expensive wine imported from Northern Italy, Brescia, consumed in San Diego 5 million copies of Adele CDs produced in London, and purchased by US Adele fans QUESTION 16 As published by the BEA in September, the Nominal GDP for the second quarter of 2019 is and the real GDP growth rate the second quarter of 2019 is O $ 17.03 trillion, 3% O $ 21.34 trillion, 2.1% C $ 17.03 trillion, 1.2% O $ 19.25 trillion, 1.2%QUESTION 36 The Federal Reserve System O A. Regulates the nation's financial institutions. O B. Conducts the nation's monetary policy. O C. Both answers A and B are correct. O D. Neither answer A nor B is correct