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An MNC ' s European subsidiary is valued at Euro 5 million. What is the MNC maximum weekly loss due to exchange rate movements using

An MNC

'

s European subsidiary is valued at Euro

5

million. What is the MNC maximum weekly loss due to exchange rate movements using the value at risk method with a

95 %

confidence, if the expected weekly appreciation

/

depreciation of the Euro is

9 %

and the weekly standard deviation of exchange rate changes is

18 % ?

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