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Suppose that you hold a piece of land in the city of London that you may want to booms in the future, the and wil

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Suppose that you hold a piece of land in the city of London that you may want to booms in the future, the and wil be worth $2,000, and one British pound will be worth $1.80, If the British economy slows down, on the other hand, the land will be worth less, say, 1,500, but the pound will be stronger, say, $1.90/E. You feel that the British economy will experience a boom with a 60 percent probability and a slowdown with a 40 percent probastity. a. Estimate your exposure (b) to the exchange risk. (Negative amount should be indicated by a minus sign.) b. Compute the variance of the dollar value of your property that is attributable to exchange rate uncertainty

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