Returi Suppose you are a British venture capitalist holding a major stake in an e-commerce start-up...

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Returi Suppose you are a British venture capitalist holding a major stake in an e-commerce start-up in Silicon Valley. As a British resident, you are concerned with the pound value of your U.S. equity position. Assume that if the American economy booms in the future, your equity stake will be worth $1,000,300, and the exchange rate will be $1.4/. If the American economy experiences a recession, on the other hand, your American equity stake will be worth $500,320, and the exchange rate will be $1.6/. You assess that the American economy will experience a boom with a 60 percent probability and a recession with a 40 percent probability. a. Estimate your exposure to the exchange risk. (Round final answer to nearest dollar.) Answer is complete but not entirely correct. Exposure $ 43,270 x b. Compute the variance of the pound value of your American equity position that is attributable to the exchange rate uncertainty. (Round final answer to nearest dollar.) Answer is complete but not entirely correct. Returi Suppose you are a British venture capitalist holding a major stake in an e-commerce start-up in Silicon Valley. As a British resident, you are concerned with the pound value of your U.S. equity position. Assume that if the American economy booms in the future, your equity stake will be worth $1,000,300, and the exchange rate will be $1.4/. If the American economy experiences a recession, on the other hand, your American equity stake will be worth $500,320, and the exchange rate will be $1.6/. You assess that the American economy will experience a boom with a 60 percent probability and a recession with a 40 percent probability. a. Estimate your exposure to the exchange risk. (Round final answer to nearest dollar.) Answer is complete but not entirely correct. Exposure $ 43,270 x b. Compute the variance of the pound value of your American equity position that is attributable to the exchange rate uncertainty. (Round final answer to nearest dollar.) Answer is complete but not entirely correct.