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Required: Assume that interaffiliate cash flows are uncorrelated with one another. Calculate the standard deviation of the portfolio of cash held by the centralized depository
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Assume that interaffiliate cash flows are uncorrelated with one another. Calculate the standard deviation of the portfolio of cash held by the centralized depository for the following affiliate members:
Note: Round the final answer to nearest whole dollar.
| Affiliate | Expected Transaction | Standard Deviation |
|---|---|---|
| U.S. | $ 100,000 | $ 40,000 |
| Canada | $ 150,000 | $ 60,000 |
| Mexico | $ 175,000 | $ 30,000 |
| Chile | $ 200,000 | $ 65,000 |
Portfolio standard deviation=_____
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