The Standard Deviation of Continuously Compounded Changes in the £ $\sigma$

question 34

Multiple Choice

The standard deviation of continuously compounded changes in the £/$ spot rate is estimated to be $\sigma$ = 0.0082 = 0.82% per trading day. There are 252 business days in a year. Assuming zero volatility on nontrading days (weekends and holidays) , what is the annual standard deviation of continuously compounded changes in the £/$ spot rate?

• A) 13.02%
• B) 15.11%
• C) 206.64%
• D) 228.20%
• E) Cannot be determined from the information given

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Definitions:

Crime Indexes

Statistical measures that track the incidence and categories of crimes within a given area to assess safety and crime trends.

Violent Crime

Acts of crime that involve force or threat of force against individuals, including assault, robbery, and homicide.

Non-Negligent Manslaughter

The unlawful killing of another person without the intention to do so, in circumstances not amounting to murder.

Corporate Crimes

Illegal acts committed by corporate entities or individuals acting on behalf of a corporation or business entity for financial gain.