Add 1 Question 29 PBS, Inc. is a U.S.-based exporting firm that expects to receive payments denominated in both EUR and CAD in one month. Based on today's spot rates, the dollar value of the funds to be received is estimated at $500,000 for the EUR and $300,000 for the CAD. Based on data for the last fifty months, PBS estimates the standard deviation of monthly percentage changes to be 8% for the euro and 3% for the CAD. The correlation coefficient between the EUR and the CAD is 0.30. What is the portfolio standard deviation? 7.98% 4.449 5.44% none of the options Next Question 30 Which of the following is not a measure of risk? Standard Deviation Normal Distribution VAR Variance Previous 1 pts Question 24 A set of currency cash inflows is more volatile if the correlations are low True False Next Previous Not saved Submit Quiz ampus WhatsApp Unknown 2020-12 LOOR 1 pts Pete Question 18 Assume that IRP holds. The 5-yr US Interest rate is 5% annualized, and the 5-yr Indian Interest rate is 8% annualized. Today's spot rate of the Indian rupee is $20. What is the best estimate, five-year forecast of the rupee's spot rate if the five-year forward rate is used as a forecast? 50226 50124 020 Next Question 21 The U.S. inflation rate is expected to be 4 percent over the next year, while the European inflation rate is expected to be 3 percent. The current spot rate of the euro is $1.03. Using purchasing power parity, the expected spot rate at the end of one year is $ 104 103 105 102 hin Oreo Question 19 The following regression model was estimated to forecast the value of the EUR: ations EUR = 20 + INT + oxINF+ Sallery dia where EUR is the quarterly change in the rupee, INT is the real interest rate differential in period t between the US and Eurozone, and INF is the inflation rate differential between the US and Eurozone in the previous period. Regression results indicate coefficients of do - 003; 0; --5; and og 8. Assume that INF-2%. However, the interest rate differential is not known at the beginning of period and must be estimated. You have developed the following probability distribution: w H Campus le Drive Probability Possible Outcome Esation 30% 40% 30 The third Tron here to search 8 ViewSonic