eBook You use today's spot rate of the Brazilian real to forecast the spot rate of the real for one month ahead. Today's spot rate is $0.4517. Assume that you obtain the end-of-month spot exchange rates of the Brazilian real during the end of each of the last 6 months. End of Value of Month Brazilian real 1 $0.4255 2 0.4202 3 0.4194 4 0.4502 5 0.4598 0.4517 Use the value-at-risk method to determine the maximum percentage loss of the Brazilian real over the next month based on a5 percent confidence level. Do not round intermediate calculations. Round your answer to two decimal places. Forecast the exchange rate that would exist under these conditions. Do not round intermediate calculations. Round your answer to four decimal places.
eBook You use today's spot rate of the Brazilian real to forecast the spot rate of the real for one month ahead. Today's spot rate is $0.4517. Assume that you obtain the end-of-month spot exchange rates of the Brazilian real during the end of each of the last 6 months. End of Value of Month Brazilian real 1 $0.4255 2 0.4202 3 0.4194 4 0.4502 5 0.4598 0.4517 Use the value-at-risk method to determine the maximum percentage loss of the Brazilian real over the next month based on a5 percent confidence level. Do not round intermediate calculations. Round your answer to two decimal places. Forecast the exchange rate that would exist under these conditions. Do not round intermediate calculations. Round your answer to four decimal places.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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You use today's spot rate of the Brazilian real to forecast the spot rate of the real for one month ahead. Today's spot rate is $0.4517. Assume that you obtain the end-of-month spot exchange rates of the
Brazilian real during the end of each of the last 6 months.
End of
Value of
Month
Brazilian real
1
$0.4255
2
0.4202
3
0.4194
4
0.4502
5
6
0.4598
0.4517
Use the value-at-risk method to determine the maximum percentage loss of the Brazilian real over the next month based on a 5 percent confidence level. Do not round intermediate calculations. Round your
answer to two decimal places.
%
Forecast the exchange rate that would exist under these conditions. Do not round intermediate calculations. Round your answer to four decimal places.
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