Which of the Following Is True About Daily Exchange Rate

question 11

Multiple Choice

Which of the following is true about daily exchange rate moves?

• A) Four standard deviation daily moves in an exchange rate happen less frequently than they would do if changes were normally distributed
• B) Four standard deviation daily movements in an exchange rate happen more frequently than three standard deviation moves in the exchange rate
• C) The frequency of six standard deviation daily movements in an exchange rate is about once every 100 years
• D) None of the above

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