FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose the correlation between the stock euro returns of Siemens and the USD/EUR exchange rate is 0.2. The standard deviation of the USD/EUR is 10%

Suppose the correlation between the stock euro returns of Siemens and the USD/EUR exchange rate is 0.2. The standard deviation of the USD/EUR is 10% and the standard deviation of Siemen's stock euro returns are 15% What is the standard deviation of Siemen's stock returns expressed in U.S. dollars?

A) 9.16%

B) 13%

C) 19.62%

D) 38.5%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance Turning Money Into Wealth

Personal Finance Turning Money Into Wealth

Authors: Arthur J. Keown

6th Edition

0132719169, 978-0132719162

More Books

Students also viewed these Finance questions

Question

★★★★★
Ball Hardware Company, which uses a periodic inventory system, began 2014 with 9,000 units of inventory that cost a total of $90,000. During 2014, Ball purchased merchandise on account as follows:...

Answered: 1 week ago

Question

★★★★★
Master Card and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 19.2%, with interest paid monthly, what is the...

Answered: 1 week ago

Question

★★★★★
What could you do to teach these skills, while still covering the material that will be on the proficiency or achievement tests the students will have to take in the spring?

Answered: 1 week ago

Question

★★★★★
On July 31, 2012, the balances of the accounts appearing in the ledger of Sagebrush Company are as follows: Instructions 1. Does Sagebrush Company use a periodic or perpetual inventory system?...

Answered: 1 week ago

Question

★★★★★
1 You are considering refinancing your homes 30 year mortgage at a lower interest rate. Your original loan amount was $85,000 and your current monthly payment is $683.93. Assuming you wish to...

Answered: 1 week ago

Question

★★★★★
Dear sir , please help to solve this problem with an explanation King's Grant Golf Co. sells a special putter for $120 each. In March. it sold 32,000 putters while manufacturing 34,000. There was no...

Answered: 1 week ago

Question

★★★★★
Define and explain two of the four pieces to Lessig's Framework. I should see how you understand how Lessig's Laws apply to the IT world. (Minimum of two paragraphs)Thank you

Answered: 1 week ago

Question

★★★★★
Explain in detail the different methods of performance appraisal .

Answered: 1 week ago

Question

★★★★★
In a particular county, the average number of suicides reported each month is 2.75. Assume that the number of suicides follows a Poisson distribution. What is the probability that at least two (two...

Answered: 1 week ago

Question

★★★★★
Renaldo's Bakery makes bread for the local restaurants. Gennaro's job is to inspect the bread for defects, including size, holes, slice width, hardness, and softness. Each loaf of bread could have as...

Answered: 1 week ago

Question

★★★★★
=+3. Do differences in profitability exist within the different business models in the video game industry? State possible reasons?

Answered: 1 week ago

Question

★★★★★
=+3. Explain a few differences between the business models of the music publishing houses and the record producer.

Answered: 1 week ago

Question

★★★★★
=+1. Point out the range of services by means of an example of the video and computer game industry! Also distinguish between the online and offline range of services!

Answered: 1 week ago

Previous Question Next Question