Interest rates in India are 5.25% p.a. and in Brazil they are currently at 2.5% p.a. The BRL/INR spot rate is 13.37.

(a) Calculate the theoretical three-year forward rate of the BRL implied by Interest Rate Parity.

(b) Now assume the actual two-year forward rate is BRL/INR 15.20. What, if any, is the percentage return from engaging in Covered Interest Arbitrage? Assume a transaction cost of 0.3% in the spot and the forward market. (Calculate the result as a percentage of your initial borrowing, accurate to 4 decimal places, making sure to include any opportunity cost in your calculations)

Interest rates in India are 5.25% p.a. and in Brazil they are currently at 2.5% p.a. The BRL/INR spot rate is 13.37. (a) Calculate the theoretical three-year forward rate of the BRL implied by Interest Rate Parity. (b) Now assume the actual two-year forward rate is BRL/INR 15.20. What, if any, is the percentage return from engaging in Covered Interest Arbitrage? Assume a transaction cost of 0.3% in the spot and the forward market. (Calculate the result as a percentage of your initial borrowing, accurate to 4 decimal places, making sure to include any opportunity cost in your calculations)

1. We have two samples of people who took a literacy test, termed Literacy A and Literacy B which are from two different states. Researches are interested if there's a difference in literacy between the two states. First use folded F test to see if the varianceare equal or not, then T- test

Jeremy earned $100,000 in salary and $6,000 in interest income during the year. Jeremy’s employer withheld $11,000 of federal income taxes from Jeremy’s paychecks during the year. Jeremy has one qualifying dependent child who lives with him. Jeremey qualifies to file as head of household. Assume the original facts except that Jeremy had only $7,000 in itemized deductions. ( use 2019 )

1. (1.3) Determine Jeremy’s tax refund or taxes due. You must show work.

2. (0.3) Copy and paste the applicable table showing tax rates used.

3. Comment (optional)

Using a dividend discount model, what is the price for this stock? Stock covariance with the market= 0.5 Market variance = 0.25 Stock covariance with a second risk factor= 0.6 Variance of the second factor= 0.3 Market Premium:3% Second factor risk premium=1% Risk free rate =2 % Current earnings per share= $5, The ROE is expected to shrink (decrease) at the rate 10% for first 5 years The ROE is expected to grow at the rate 8% forever after the first 5 years Payout for the first 5 years: 50% Payout after 5 years: 50%

.You are interested in determining whether there is a statistically significant difference between
economics and political science majors in terms of their overall grade point average (GPA). You
randomly sample 10 economics majors and 16 political science majors. You find that the average
economist has a 3.0 GPA with a standard deviation of 0.4, and the average political scientist has
a 3.4 GPA with a standard deviation of 0.3. Conduct a two-tailed hypothesis test using
significance level α = 0.05. Clearly state the hypotheses, the test statistic, the p-value, and your
conclusion (in complete, plain language sentences).

Question
(a) Consider a random sample of the following data: 254, 261, 250, 258, 253, 257.
Calculate the unbiased estimator of the population variance.

(b) Suppose the GPA of all students enrolled in a particular course can be modelled by a
certain distribution with a mean of 3.4 and variance 0.3. Compute the probability that the
mean GPA of a random sample of 40 students selected from this course will be:

(i) lower than 3.2
(ii) between 3.3 and 3.6

(c) Suppose you throw a die 600 times. Apply a suitable technique to compute the
approximate probability of obtaining between 90 and 110 fours.

A 4m thick clayey layer was initially water saturated with water content w = 34%, and in situ effective stress σzo’ = 31 kPa. Clearly state your assumptions to determine: a) The total settlement in this clay layer, if the final void ratio after consolidation is ef = 0.75. b) If OCR = 2.2, the construction of an embankment at this site induces 48.5 kPa additional load, what will be the total settlement at this site? Assuming Cc = 0.3 and Cr = 0.06. (c) What will be the settlement after 10 years of consolidation, assuming Cv = 3.2 × 10-7 cm2 /sec and double drainage condition.

(a) Find the margin of error for the given values of​ c, σ​, and n. c = 0.90​, σ = 3.8​, n = 100

E= _ (Round to three decimal places as​ needed.)

(b) Construct the confidence interval for the population mean μ.

c = 0.90 ​, x=9.1​, σ = 0.3 ​, and n = 47

A 90​% confidence interval for μ is _, _ (Round to two decimal places as​ needed.)

(c)  Construct the confidence interval for the population mean μ.

c=0.95 , x=16.2, σ =2.0, and n =35

A 95​% confidence interval for μ is _, _ (Round to two decimal places as​ needed.)