Assessing Transaction Exposure Your employer, a large MNC, has asked you to assess its transaction exposure. Its projected cash flows are as follows for the next year. Danish krone inflows equal DK40,000,000 while outflows equal DK30,000,000. British pound inflows equal 3,000,000 while outflows equal 1,000,000. The spot rate of the krone is $.15, while the spot rate of the pound is $1.30. The standard deviation of exchange rate movements is 6% for krone and 4% for pound. Assume that the movements in the Danish krone and the British pound are highly correlated with a correlation coefficient of 0.80. Based on this information, what is the standard deviation of this two-currency portfolio, which you use to assess the firms transaction exposure? (1 point) (hint: to calculate the portfolio weights for each currency, first calculate the net positions (inflow/outflow) in each currency, and the dollar value of the net position in each currency. The weight for each currency = dollar value of the net position in the currency/total dollar value of the portfolio)