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Why might it be hard to quantify currency risk in a pegged exchange rate system? The historical volatility measured in the data is too high

Why might it be hard to quantify currency risk in a pegged exchange rate system?

The historical volatility measured in the data is too high

Historical data may be very noisy

Noise traders outnumber informed traders

The bid

-

ask spread is too large

It is hard to measure and quantify the Intent volatility directly

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