Using Excel, calculate:

• Index values given in local currency and adjust them into US values
• Calculate average monthly returns for both local currencies return and USD adjusted returns identifying what can be observed from these calculations
• Calculate the volatility of returns both in local currency terms as well as USD adjusted returns identifying observations
• Calculate pairwise correlations (in Excel) using USD returns correlating each market return with every other market return individually showing how these markets related or were unrelated to each other and why some markets were correlated to each more than others

	Exchange Rate (Foreign per USD)				Index Values
	Australia	China	Japan	U.K.	Australia	China	Japan	U.K.	U.S.
12/30/94	1.2898	8.4662	99.6000	0.6384	1505.85	110.98	590.19	8599.66	953.04
01/31/95	1.3201	8.4584	99.4300	0.6323	1455.36	98.56	549.48	8375.34	980.01
02/28/95	1.3550	8.4511	96.6000	0.6313	1544.85	97.06	507.25	8410.73	1019.27
03/31/95	1.3652	8.4464	86.8500	0.6177	1539.75	113.69	496.49	8799.07	1047.99
04/28/95	1.3751	8.4274	84.0400	0.6215	1655.71	102.45	504.14	9036.2	1079.31
05/31/95	1.3908	8.3255	84.6500	0.6303	1640.28	118.88	476.07	9390.99	1119.75
06/30/95	1.4069	8.3211	84.7800	0.6287	1647	108.12	458.11	9390.91	1150.99
07/31/95	1.3537	8.3203	88.3400	0.6258	1726.84	122.97	510.14	9880.91	1193.44
08/31/95	1.3303	8.3298	97.7500	0.6445	1748.37	131.95	547.41	9956.58	1200.18
09/29/95	1.3236	8.3385	99.1000	0.6331	1750.68	134.03	554.45	10061.79	1253.11
10/31/95	1.3132	8.3349	102.2600	0.6326	1706.56	132.39	545.12	10055.92	1251.42