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Suppose a U . S . investor wishes to invest in a British firm currently selling for 3 4 per share. The investor has $
Suppose a US investor wishes to invest in a British firm currently selling for per share. The investor has $ to invest, and the current exchange rate is $ per Consider three possible prices per share at and after year. Also, consider three possible exchange rates at $ per $ per and $ per after year. Use Excel to calculate the standard deviation of both the pound and dollardenominated rates of return if each of the nine outcomes three possible prices per share in pounds times three possible exchange rates is equally likely.
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