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If the standard deviation of Euro percentage changes is 10% annualized, what is the appropriate standard deviation to use for assessing the risk on a
If the standard deviation of Euro percentage changes is 10% annualized, what is the appropriate standard deviation to use for assessing the risk on a 1-month investment? Next, assuming an expected percentage appreciation for Euro of 3% per year (0.25% per month), what is the probability that Euro will appreciate more than 5% in 1 month? What about the probability that it will depreciate by more than 5%?
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