Question: Now suppose the investor in Problem 3 also sells forward 5,000 at a forward exchange rate of $2.10/. a. Recalculate the dollar-denominated returns for each

Now suppose the investor in Problem 3 also sells forward £5,000 at a forward exchange rate of $2.10/£.
a. Recalculate the dollar-denominated returns for each scenario.
b. What happens to the standard deviation of the dollar-denominated return? Compare it to both its old value and the standard deviation of the pound-denominated return.

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