# The expected rate of return and its standard deviation,

Not what you're looking for?

1. An American business needs to pay (a) 15,000 Canadian dollars, (b) 1.5 million yen,and (c) 55,000 Swiss francs to businesses abroad. What are the dollar payments to the respective countries?

2. An American business pays $20,000, $5,000, and $15,000 to suppliers in, respectively, Japan, Switzerland, and Canada. How much, in local currencies, do the suppliers receive?

3. Compute the indirect quote for the spot and forward Canadian dollar, Japanese Yen, and Swiss franc contracts.

4. You are considering a security with the following possible rates of return:

##### Purchase this Solution

##### Solution Summary

This post shows how to calculate the expected rate of return and its standard deviation, indirect quote for the spot and what are the dollar payment

##### Solution Preview

Please see the attached file. Thanks

COUNTRY CONTRACT $/FOREIGN CURRENCY

Canada-dollar Spot .8437

30-day .8417

90-day .8395

Japan-yen Spot .004684

30-day .004717

90-day .004781

Switzerland-franc Spot .5139

30-day .5169

90-day .5315

1. An American business needs to pay (a) 15,000 Canadian dollars, (b) 1.5 million yen,and (c) 55,000 Swiss francs to businesses abroad. What are the dollar payments to the respective countries?

(a) 15,000 Canadian dollars

=15000*0.8437=US$ 12,655.50

(b) 1.5 million yen

=1.5*1000000*0.004684=US$ 7,026.00

(c) 55,000 Swiss francs

= 55000*0.5139=US$ 28,264.50

2. An American business pays $20,000, $5,000, and $15,000 to suppliers in, respectively, Japan, ...

##### Purchase this Solution

##### Free BrainMass Quizzes

##### Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

##### Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

##### Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

##### Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.