the curo against the dollar will not occur more than 1 percent of the time, or 1 day in every 100 days) if the spot exchange rate is 0.80/$1, or $1.25/, at the daily close. Question 3: (10 points) Suppose that an FI holds two loans with the following characteristics: Loan i 1 2 X 0.55 0.45 Ri 8% 10 oi 8.55% 9.15 012 73.1025% 83.7225 PI2= 0.24 diz=18.7758 Calculate the return and risk of the portfolio