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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 bringing up the stock prices in Turkey. But, at the same time, he is instead an concerned with the volatile exchange roams of the Turkish currency. He would the like to understand what drives the Turkish exchange grade. Since the fanfare outrank is untold higher in Turkey than in the U.S., he thinks that the purchase power parity may be keeping at least to some extent. As a enquiry participator for him, you were assigned to check this out. In other words, you pay covert to study and prepare a report on the following question: Does the purchasing power parity hold for the Turkish lira-U.S. dollar exchange rate? Among oth er things, Mr.

Mobaus would like you to do the following: 1) Plot the division changes in exchange induct (y-axis) against the inflation rate differentials (x-axis) between Turkey and the U.S. for the given entropy. 2) change the percentage changes in exchange rates on the inflation rate differential to estimate the intercept and the slope coefficient, and correspond the regression results. For analysis, use the selective information 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 dead a full essay, orde! r it on our website: BestEssayCheap.com

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