Suppose a U.S. investor wishes to invest in a British firm currently selling for 64 British pounds (BP) per share. The investor has $12,800 to invest, and the current exchange rate is $2/BP.

Problem 25-4 Suppose a US. investor wishes to invest in a British firm currently selling for 64 per share. The investor has $12,800 to invest, and the current exchange rate is $2/. Consider three possible prices per share at 60, 65, and 70 after1 year. Also, consider three possible exchange rates at $1.6/, $2/E, and $2.4/ after 1 year. Calculate the standard deviation of both the pound- and dollar- denominated rates of return if each of the nine outcomes {three possible prices per share in pounds times three possible exchange rates) is equally likely. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Standard deviation of pound- denominated return Standard deviation of dollar- denominated return