You have landed a winter internship at the private wealth management division of Suncorp in Brisbane. The MD of the division has asked you to do some basic calculations needed for a presentation to investors in Southeast Queensland. You are given two datasets that are provided in the next two pages. I have also provided you with this data in an excel spreadsheet (FINM3403_2022_TakeHome.XLSX) that you can utilise to figure out the answers. Do not cut-and-paste excel spreadsheets in the document you submit. (a) Worksheet "Table Q3.1" contains the average monthly returns for USA, Australia, India and China in their local currencies and the average monthly exchange rate returns over the 28 years (1994 to 2021). (b) Worksheet "Table Q3.2" contains market indices for MSCI USA, Australia, Hong Kong and Japan (denominated in local currency) and exchange rates relative to USD for the last six months (December 2021 - May 2022). Your task, if you choose to accept it, (1) To quantify the impact of currency movements on investment returns of the four markets (USA, Australia, India and China) for the period until 2021 using data in (Worksheet) TableQ3.1. Provide your answer in no more than two or three sentences. (4 points) Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 USA 0.0016 0.0270 0.0180 0.0244 0.0223 0.0168 -0.0112 -0.0107 -0.0215 0.0213 0.0085 0.0046 0.0119 0.0049 -0.0387 0.0200 0.0120 0.0016 0.0125 0.0235 0.0105 0.0011 0.0092 0.0165 -0.0038 0.0229 0.0161 0.0199 Table Q3.1 Local Currency Market Returns AUSTRALIA INDIA CHINA -0.0059 0.0079 -0.0519 0.0133 -0.0213 -0.0198 0.0082 -0.0003 0.0265 0.0082 0.0164 -0.0242 0.0107 -0.0132 -0.0459 0.0089 0.0543 0.0107 0.0057 -0.0146 -0.0301 0.0090 -0.0153 -0.0237 -0.0082 0.0062 -0.0126 0.0103 0.0441 0.0520 0.0198 0.0105 0.0017 0.0190 0.0295 0.0148 0.0175 0.0329 0.0506 0.0127 0.0361 0.0426 -0.0385 -0.0690 -0.0597 0.0263 0.0551 0.0406 0.0006 0.0125 0.0041 -0.0095 -0.0244 -0.0169 0.0157 0.0218 0.0172 0.0159 0.0069 0.0033 0.0047 0.0195 0.0066 0.0012 -0.0014 -0.0067 0.0096 0.0009 0.0010 0.0089 0.0222 0.0367 -0.0017 0.0012 -0.0171 0.0175 0.0079 0.0174 -0.0007 0.0142 0.0207 0.0126 0.0211 -0.0203 Exchange Rate Returns AUD/USD AUD/YUAN AUD/INR -0.0111 -0.0424 -0.0111 0.0035 0.0048 -0.0060 -0.0055 -0.0053 -0.0070 0.0175 0.0177 0.0086 0.0050 0.0050 -0.0017 -0.0054 -0.0054 -0.0074 0.0136 0.0136 0.0078 0.0068 0.0068 0.0041 -0.0079 -0.0079 -0.0075 -0.0243 -0.0243 -0.0201 -0.0033 -0.0033 0.0007 0.0055 0.0076 0.0026 -0.0060 -0.0032 -0.0046 -0.0090 -0.0035 0.0007 0.0192 0.0249 0.0016 -0.0212 -0.0213 -0.0174 -0.0109 -0.0080 -0.0076 0.0000 0.0038 -0.0143 -0.0010 -0.0002 -0.0037 0.0124 0.0148 0.0023 0.0074 0.0054 0.0057 0.0098 0.0060 0.0059 0.0004 -0.0053 -0.0017 -0.0064 -0.0010 -0.0013 0.0088 0.0044 0.0013 0.0001 -0.0011 -0.0017 -0.0078 -0.0025 -0.0097 0.0050 0.0071 0.0035 You have landed a winter internship at the private wealth management division of Suncorp in Brisbane. The MD of the division has asked you to do some basic calculations needed for a presentation to investors in Southeast Queensland. You are given two datasets that are provided in the next two pages. I have also provided you with this data in an excel spreadsheet (FINM3403_2022_TakeHome.XLSX) that you can utilise to figure out the answers. Do not cut-and-paste excel spreadsheets in the document you submit. (a) Worksheet "Table Q3.1" contains the average monthly returns for USA, Australia, India and China in their local currencies and the average monthly exchange rate returns over the 28 years (1994 to 2021). (b) Worksheet "Table Q3.2" contains market indices for MSCI USA, Australia, Hong Kong and Japan (denominated in local currency) and exchange rates relative to USD for the last six months (December 2021 - May 2022). Your task, if you choose to accept it, (1) To quantify the impact of currency movements on investment returns of the four markets (USA, Australia, India and China) for the period until 2021 using data in (Worksheet) TableQ3.1. Provide your answer in no more than two or three sentences. (4 points) Year 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 USA 0.0016 0.0270 0.0180 0.0244 0.0223 0.0168 -0.0112 -0.0107 -0.0215 0.0213 0.0085 0.0046 0.0119 0.0049 -0.0387 0.0200 0.0120 0.0016 0.0125 0.0235 0.0105 0.0011 0.0092 0.0165 -0.0038 0.0229 0.0161 0.0199 Table Q3.1 Local Currency Market Returns AUSTRALIA INDIA CHINA -0.0059 0.0079 -0.0519 0.0133 -0.0213 -0.0198 0.0082 -0.0003 0.0265 0.0082 0.0164 -0.0242 0.0107 -0.0132 -0.0459 0.0089 0.0543 0.0107 0.0057 -0.0146 -0.0301 0.0090 -0.0153 -0.0237 -0.0082 0.0062 -0.0126 0.0103 0.0441 0.0520 0.0198 0.0105 0.0017 0.0190 0.0295 0.0148 0.0175 0.0329 0.0506 0.0127 0.0361 0.0426 -0.0385 -0.0690 -0.0597 0.0263 0.0551 0.0406 0.0006 0.0125 0.0041 -0.0095 -0.0244 -0.0169 0.0157 0.0218 0.0172 0.0159 0.0069 0.0033 0.0047 0.0195 0.0066 0.0012 -0.0014 -0.0067 0.0096 0.0009 0.0010 0.0089 0.0222 0.0367 -0.0017 0.0012 -0.0171 0.0175 0.0079 0.0174 -0.0007 0.0142 0.0207 0.0126 0.0211 -0.0203 Exchange Rate Returns AUD/USD AUD/YUAN AUD/INR -0.0111 -0.0424 -0.0111 0.0035 0.0048 -0.0060 -0.0055 -0.0053 -0.0070 0.0175 0.0177 0.0086 0.0050 0.0050 -0.0017 -0.0054 -0.0054 -0.0074 0.0136 0.0136 0.0078 0.0068 0.0068 0.0041 -0.0079 -0.0079 -0.0075 -0.0243 -0.0243 -0.0201 -0.0033 -0.0033 0.0007 0.0055 0.0076 0.0026 -0.0060 -0.0032 -0.0046 -0.0090 -0.0035 0.0007 0.0192 0.0249 0.0016 -0.0212 -0.0213 -0.0174 -0.0109 -0.0080 -0.0076 0.0000 0.0038 -0.0143 -0.0010 -0.0002 -0.0037 0.0124 0.0148 0.0023 0.0074 0.0054 0.0057 0.0098 0.0060 0.0059 0.0004 -0.0053 -0.0017 -0.0064 -0.0010 -0.0013 0.0088 0.0044 0.0013 0.0001 -0.0011 -0.0017 -0.0078 -0.0025 -0.0097 0.0050 0.0071 0.0035