10. Suppose that the standard deviation of the return on Nestl, a Swiss firm, in terms of...
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10. Suppose that the standard deviation of the return on Nestlé, a Swiss firm, in terms of Swiss francs is 19%
and the standard deviation of the rate of change in the U.S. dollar-Swiss franc exchange rate is 15%. In addition, the estimated correlation between the Swiss franc return on Nestlé and the rate of change in the exchange rate is 0.17. Given these figures, what is the standard deviation of the U.S. dollar rate of return on investing in Nestlé stock?
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Related Book For 
International Financial Management
ISBN: 9781118929322
10th Edition
Authors: Alan C. Shapiro, Peter Moles
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