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The Standard Deviation of Return to the Indian Stock Market

question 31

Multiple Choice

The standard deviation of return to the Indian stock market is 24.8% in local currency. The standard deviation of the Indian rupee against the Canadian dollar is 30.2%. Ignoring interactions between the Indian stock market and the value of the Indian rupee, what is the standard deviation of return of the Indian market to a Canadian investor?

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Definitions:

AFL-CIO

The American Federation of Labor and Congress of Industrial Organizations, a federation of unions that represents workers.

Manufacturing Labor Market

The sector of the labor market focused on jobs involved in the production and fabrication of goods.

Unionized

Referring to workers or an industry segment that is organized into a union, which negotiates wages, work conditions, and other employment terms on behalf of its members.

Excess Supply

The situation in a market where the quantity of a good or service offered by producers exceeds the quantity demanded by consumers at the prevailing price.

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