What Is the Variance on the Indian (Rp = Rupee)

question 16

Multiple Choice

What is the variance on the Indian (Rp = rupee) stock market to a Canadian investor if Var(r^Rp) = 0.105, Var(s^C£/Rp) = 0.088, and the local Indian stock market is independent of the value of the rupee?

• A) -0.017
• B) 0.017
• C) 0.193
• D) cannot be determined from the given information
• E) None of the above

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