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Homework answers / question archive / Daily foreign exchange rates (spot rates) can be obtained from the Federal Reserve Bank in Chicago

Daily foreign exchange rates (spot rates) can be obtained from the Federal Reserve Bank in Chicago

Economics

Daily foreign exchange rates (spot rates) can be obtained from the

Federal Reserve Bank in Chicago. The data are the noon buying rates in New York City certified by the Federal Reserve Bank of New York. Consider the exchange rates between the U.S. dollar and the Canadian dollar, euro, U.K. pound, and the Japanese yen from January 4, 2000, to March 27, 2009. The data are also on the Web.
Using (R - programming language) show your codes as you attempt the questions below.
(Using your own R package of choice, download the data from the internet on R and):
(a) Compute the daily log return of each exchange rate.
(b) Compute the sample mean, standard deviation, skewness, excess kurtosis, minimum, and maximum of the log returns of each exchange rate.
(c) Discuss the empirical characteristics of the log returns of exchange rates.
(d) Obtain a density plot of the daily long returns of dollar-euro exchange rate.

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