Question
Consider an MNC that is exposed to the Albanian Lek (ALL) and the Croatian Kuna (HRK). 88% of the MNC's funds are lek and 12%
Consider an MNC that is exposed to the Albanian Lek (ALL) and the Croatian Kuna (HRK). 88% of the MNC's funds are lek and 12% are kuna. The standard deviation of exchange movements is 9% for lek and 16% for kuna. The correlation coefficient between movements in the value of the lek and the kuna is 0.61.
Based on this information, the standard deviation of this two-currency portfolio is approximately _%? Please round to two decimal points. For example, if your answer is 12.3456%, enter 12.35.
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