Test 2 results and current grade distribution

Here is the grade distribution for test 2.

average = 16.61 out of 20 points. (83.1%)
median = 16.75 (83.75%)
stdev = 3.05 (15.25%)

Although the standard deviation is rather high (target is 10%) the average and median are well above 80%

Therefore you should use the default scale to interpret your grade:


A: 18+ (90% and higher)
B: 16 - 17.5
C: 14 - 15.5
D: 12 - 13.5
F: 11.5 and lower

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The blue number that is circled (on you returned test) is your points accumulated to date. This number is out of 52 possible points so far.

The midterm grade distribution is as follows. It is reported in terms of percentage so you must take your points, divide by 52 (then multiply by 100 to put into a percentage).

average = 77.48%
median = 79.04%
stdev = 12.91%

The following scale would be used to give midterm grades:

A: 87% and higher
B: 78% - 86.99%
C: 66% - 77.99%
D: 50% - 65.99%
F: below 50%

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There were three scores in the D range and one in the F range. I was unable to report the midterm grades for those in the D and F range. If you are in these ranges you should consider yourself NOT in good standing. You should consider this notice of a poor performance at midterm.

Please remember, Wednesday, March 25, is the last day you can withdraw from a course.

If you have any questions please stop by my office.

J

Unable to provide sample problems

Due to some significant time constraints this week and some significant deficiencies in the availability of multiple choice questions, I am unable to provide you with any sample multiple choice questions.

If you have not discovered it, you can find online sample problems. There is a web address on the back of your text.

www.mhhe.com/economics/pugel13

Click on the "Student Edition" link to the left. You should be able to click around to find the sample quizzes. That should help you out. Please, no emails or IMs saying you can't find it. You got the website. You poke around for it.

Good luck.

Test 2 information

Test 2 is scheduled for Friday, March 13.

Expect approximately 20 multiple choice problems and two written problems.

There is an "alternative assignment" available on the I-drive that will allow you to substitute it for one of the written problems.

If any sample problems become available I will place them on the I-drive and I will post an announcement on this weblog.

Solutions to Homework #2 are available on the I-drive.

Ok already, here are a few hints

Here are some hints to help you with the second homework.

1. Ok, this is just definitional. You should be able to figure it out. BTW, did you figure out that A and B are actually the same thing? And if you figured that out, you probably figured out C and D were the same thing too.

2. The class was informed that this problem was designed to get you to use the text. P. 388 in the 13th edition has an example of this "3-point arbitrage" or "triangular arbitrage". You can solve this in a number of different ways. Note that the first exchange rate is a dollar-yen exchange rate. So from the next two (dollar-kroner) and (yen-kroner) you can find the dollar-yen exchange rate. Now these two dollar-yen exchange rates should be equal, but they aren't. And since they aren't you should be able to profit. You'll want to sell your dollars cheap (initially) and buy them back dear (eventually). Well, you'll really want to do all three transactions at the same time. This is a puzzle problem. Solve it.

3. Are you getting the same answer for each one? Me too.

4. Just like we did in class and for the alternate assignment.

5. Just like we did in class and for the alternate assignment.

4 and 5 are just for more practice. Determine the interest rate differential. Determine the forward premium. Compare. Use the inequality to figure out the capital flows.

6. This is like 4 and 5 but rather than selling your currency forward today, you wait until the end of the period (hence the "expected spot rate").