Volusia,Inc

question 39

Multiple Choice

Volusia,Inc.is a U.S.-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 dollar 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

---

Definitions:

False Statement

A claim or assertion that is not in accordance with facts or truth.

Malpighian Tubules

Excretory structures that remove wastes from the hemolymph (blood) of insects and arachnids, playing a role in osmoregulation.

Active Transport

A cellular process that moves substances against their concentration gradient, requiring energy.

Toxic Ammonia

Harmful levels of ammonia that can accumulate in the body or environment, potentially leading to health issues or ecological damage.