Finance Task Harvard Case Solution & Analysis

Finance Task Case Solution

Q1

The variance and the standard deviation of the exchange rates

Ans

 The Canadian dollar faced highest deviation against the US dollar of about 10.54% and the lowest variation is against HK Dollar of about 1.36%.Similar is the case with variance, which is 0.111 for the US dollar and 0.000185 for Hong Kong Dollar.

 How is it computed?

 Following are the weights are applied to the CERI calculation from 1996 to the present:

The formula for the CERI is

  b) Examine the trend in CERI since May 2015

Ans: In May-15, the CERI was at 102.56 and it showed a decreasing trend in Jan-16. Currently,in Jan-16 its value is 88.86 which shows that the value of Canadian dollar has depreciated by 13.7%. (Canada)

 3a) in what sense has monetary policy in advanced countries diverged?

Ans:

 The monetary policy in advanced countries such as UK, Canada, and USA has diverged a lot due to globalization. The major challenge is to cope the difference in divergence in stance, stand and position taken by the US as compared to other advanced economies. It is expected that divergence creates differences between the US and the Euro. The conventional view is that no problems will be created for global economy.

The major reasons for divergence in monetary policy in advanced countries are due to four essential developments that global economy has observed over recent years......................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

Related Case Solutions & Analyses:

China Novartis Institute for Biomedical Research: Building a sustainable globally integrated research enterprise Regulatory Uncertainty and Corporate Responses to Environmental Protection in China Foreign Direct Investment and Irelands Tiger Economy (B) Systems Infrastructure at Google (B) ConAgra Inc.: Across the Food Chain The Upside of Messiness: Clumsy Solutions for Wicked Problems Balanced Workplace Flexibility: Avoiding the Traps Negotiating with the Cuban Sugar Industry (A): No Way Out? Strategy Formulation Paper Nancheng Glass Works (B)