Assuming That the Inter-Affiliate Cash Flows Are Uncorrelated with One

question 5

Multiple Choice

Assuming that the inter-affiliate cash flows are uncorrelated with one another,calculate the standard deviation of the portfolio of cash held by the centralized depository for the following affiliate members: (Round your final answer to nearest whole dollar) $$\begin{array} { l c c } \text { Affiliate } & \begin{array} { c } \text { Expected } \\\text { Transactions }\end{array} & \begin{array} { c } \text { Standard } \\\text { Deviation }\end{array} \\\hline \text { U.S. } & \$ 100,000 & \$ 40,000 \\\text { Canada } & \$ 150,000 & \$ 60,000 \\\text { Mexico } & \$ 175,000 & \$ 30,000 \\\text { Chile } & \$ 200,000 & \$ 70,000\end{array}$$

• A) 60,000
• B) 88,122
• C) 104,881
• D) 120,103

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