Exchange rates returns

This is because daily exchange rate returns represent a much larger dataset than weekly and monthly returns. 

The kinetic method of determining relative acidity suffers from one serious complication, however. This complication has to do with the fate of the ion pair that is formed immediately on removal of the proton. If the ion pair separates and difiuses into the solution rapidly, so that each deprotonation results in exchange, the exchange rate is an accurate measure of the rate of deprotonation. Under many conditions of solvent and base, however, an ion pair may return to reactants at a rate exceeding protonation of the carbanion by the solvent. This phenomenon is called internal return ... 

When the gas returns to the pulse tube, its temperature is equal to the temperature of the heat exchanger Tg = Tu. The heat exchange rate between the gas and the heat exchanger is given by ... 

When the exchange rate becomes faster than A co, then the single resonance, centered at ( >a + average environment and, as the exchange time decreases further, the linewidth eventually returns to the value of the separate signals in the absence of exchange (Fig. 4.1A(6-9)). 

At first fhe unprecedented activity of fhe second-generation catalysts was thought to be a result of faster phosphine dissociation [95]. This result indicated that fhe phosphine dissociation kinetics as well as fhe metathesis activity of the resulting 14-electron intermediate must be considered to rationalize the activity of these catalysts. Interestingly, returning to PPhs is valuable for fhe NHC complexes, in fhat fhe phosphine exchange rate for complex 11 is almost fhat of complex 6 [101]. 

The same scenario occurred between 2002 and 2003, it had a 6% growth. It was a return to profitability, we thought, but the reason for the improvement was how we define the dollar s exchange rate. In reality, we treated absolutely no new acres during that time frame. 

Example. A multinational firm based in the United States is considering an investment in Mexico. The exchange rate is currently 10 Mexican pesos to 1 U.S. dollar. (There are a variety of sources available with exchange rate data, e.g., Tukiainen 1999.) Assume an investment cost of 10 million pesos with an expected annual return of 500,000 pesos per year over a five-year horizon. 

Investors mnst believe that cnrrencies will maintain their current real exchange rate in the future, moving in line with relative changes in the linking price indices in any two markets. This will ensure that equal real yields result in equal nominal returns when translated into any currency. 

Range accrual notes can be based on almost any qnoted market rate. In this example, the return on a dollar-denominated instrnment is linked to European short-term interest rates, but it could also be linked to exchange rates, stock or commodity prices. In most cases they are structured using strips of digital options. 

The data that can go into computing factor returns will of course depend on what the factors are. It can include bond and index level data as well as currency exchange rates. Assume that we have the factor return series. To construct covariances, we could postulate that the underlying random processes are time stationary and compute covariances using equally weighted factor returns. We actually know that mar-... 

GARCH volatilities can be combined with correlations computed independently, for instance from weekly returns, to produce the covariance matrix of currency factors. This approach has the advantage of combining accurate and highly responsive estimates of exchange rate volatilities with correlations computed over a longer time horizon and which are typically more robust. 

The motivations behind the development and use of more exotic, structured notes are varied. They include the desire for increased yield without additional credit risk, as well as the need to alter, transform, hedge, or transfer risk exposure and modify risk-return profiles. These instruments have been issued by banks, corporate institutions, and sovereign authorities. They can be tailored to particular risk profiles and enable investors to gain exposure to different markets, sometimes synthetically, that they have previously been unable to access. For instance, by purchasing structured notes, investors can take positions reflecting their views on exchange rates... 

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