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estion One: (10 Marks) I a) Interpret the effect on the Egyptian pound of an increase in import barriers in Egypt. (2 Marks) b) Interpret

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estion One: (10 Marks) I a) Interpret the effect on the Egyptian pound of an increase in import barriers in Egypt. (2 Marks) b) Interpret the effect on the Egyptian pound of lower productivity of traded goods in Egypt. (2 Marks) b) Interpret the effect on the Egyptian pound of lower productivity of traded goods in Egypt. (2 Marks) c) Interpret the effect on the Egyptian exchange rate of an increase in Foreign interest rates. Graphical illustration is required. (3 Marks) d) For the Theory of Purchasing Power Parity to hold, what must happen to the currency of a nation that encounters an increase in prices of its commodities and why? Give an Example (3 Marks) Question Two: (10 Marks) There are many types of mutual funds in Egypt all with different objectives, look up all the mutual funds existing in Egypt, then select two funds from different firms that have different objectives. For each of the two funds: State when the fund was established, which firm is issuing the fund, which asset class it belongs to what is the objective of the fund. Obtain NAV for each fund in 2019 and 2020, calculate the yield of both and compare which fund provides more return. Comment on your answer explaining why you think that fund is yielding higher return. . estion One: (10 Marks) I a) Interpret the effect on the Egyptian pound of an increase in import barriers in Egypt. (2 Marks) b) Interpret the effect on the Egyptian pound of lower productivity of traded goods in Egypt. (2 Marks) b) Interpret the effect on the Egyptian pound of lower productivity of traded goods in Egypt. (2 Marks) c) Interpret the effect on the Egyptian exchange rate of an increase in Foreign interest rates. Graphical illustration is required. (3 Marks) d) For the Theory of Purchasing Power Parity to hold, what must happen to the currency of a nation that encounters an increase in prices of its commodities and why? Give an Example (3 Marks) Question Two: (10 Marks) There are many types of mutual funds in Egypt all with different objectives, look up all the mutual funds existing in Egypt, then select two funds from different firms that have different objectives. For each of the two funds: State when the fund was established, which firm is issuing the fund, which asset class it belongs to what is the objective of the fund. Obtain NAV for each fund in 2019 and 2020, calculate the yield of both and compare which fund provides more return. Comment on your answer explaining why you think that fund is yielding higher return

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