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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 arouse the stock prices in Turkey. But, at the same time, he is quite an concerned with the volatile exchange roams of the Turkish currency. He would the likes of to understand what drives the Turkish exchange grade. Since the largeness outrank is frequently higher in Turkey than in the U.S., he thinks that the buy power parity may be keeping at least to some extent. As a enquiry benefactor for him, you were assigned to check this out. In other words, you pay dressing 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 other things, Mr.

Mobaus would like you to do the following: 1) Plot the division changes in exchange amaze (y-axis) against the inflation rate differentials (x-axis) between Turkey and the U.S. for the given entropy. 2) lapse the percentage changes in exchange rates on the inflation rate differential to estimate the intercept and the slope coefficient, and see the regression results. For analysis, use the 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, order it o! n our website: OrderCustomPaper.com

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