TOTAL RISK

FP#1and

FP#1

Question 6

4pts

Identify thevariable inputsto determine the standard deviation ofFP#1.

a)standard deviation of ROPC for JPY/MYR

b)Standard deviation of of ROPC for bond (JPY)

c)Corr(b, JPY/MYR)

d)Corr(b, FM)

e)Standard deviation of ROPC for bond (MYR)

f)Corr(FP,FM)

g)Corr(b, MYR/JPY)

h)standard deviation of ROPC for MYR/JPY

Question 7

3pts

Use excel to determine thestandard deviationof the foreign bond,fb#1and fill-in-the-blank.

Question 8

5.5pts

Thestandard deviationof the foreign currency is denominated as:

a)(MYR/JPYorJPY/MYR) and is equal to

b)fx#1=

Question 9

4pts

Thecorrelationneeded to determine the standard deviationFP#1is betweena)andb), is equal toc).

Question 10

5pts

Thestandard deviationof theFP#1is: ________