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Veritas Emerging Market Fund specializes in investing in emerging stock markets of the world. Mr. Henry Mobaus, an experienced hand in international investment and yourboss, is currently interested in Turkish stock markets. He thinks that Turkey will eventually be invited to negotiate its membership in the European Union. If this happens, it will line up the stock prices in Turkey. But, at the same time, he is preferably an concerned with the volatile exchange roams of the Turkish currency. He would wish well to understand what drives the Turkish exchange grade. Since the pretension outrank is frequently higher in Turkey than in the U.S., he thinks that the get power parity may be keeping at least to some extent. As a enquiry ally for him, you were assigned to check this out. In other words, you pay natural covering to study and prepare a report on the pursual question: Does the purchasing power parity hold for the Turkish lira-U.S. dollar exchange rate? Among other things, Mr.

Mobaus would like you to do the following: 1) Plot the division changes in exchange direct (y-axis) against the inflation rate differentials (x-axis) between Turkey and the U.S. for the given entropy. 2) simple regression the percentage changes in exchange rates on the inflation rate differential to estimate the intercept and the slope coefficient, and yield the regression results. For analysis, use the entropy Case_Study.xls. The data spreadsheet contains monthly data on the spot exchange rates (TRL/USD), consumer prices indices for Turkey (TK_CPI) and the US (US_CPI) from December 1998 December 2002.If you want to drop dea! d a full essay, order it on our website: BestEssayCheap.com

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