Volusia, Plc Is a UK-Based Exporting Firm That Expects to Receive

question 1

Multiple Choice

Volusia, plc is a UK-based exporting firm that expects to receive payments denominated in both euros and Canadian dollars in one month. Based on today's spot rates, the pound value of the funds to be received is estimated at £500,000 for the euros and £300,000 for the Canadian dollars. Based on data for the last fifty months, Volusia estimates the standard deviation of monthly percentage changes to be 8 percent for the euro and 3 percent for the Canadian dollar. The correlation coefficient between the euro and the Canadian dollar is 0.30. What is the portfolio standard deviation?

• A) 3.00%
• B) 5.44%
• C) 17.98%
• D) None of the above

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Definitions:

Dry Promotion

A promotion where an employee is given a higher title or rank without a corresponding increase in pay or benefits.

Lateral Transfer

A move by an employee to another job within the same organization at the same level, usually with similar pay and responsibilities.

Production Efficiencies

Measures of how effectively resources are used during the production process to maximize output and minimize waste.

Community Outreach

Initiatives and programs designed to engage and build relationships with the local community or specific demographic groups.