Problem 5:

Problem 5 Intro A multinational corporation is expecting cash flows in two currencies, the U.S. dollar ($) and the euro (). The standard deviation of monthly percentage changes in dollars is 19% and it is 2% for the euro. The correlation coefficient of monthly precentage changes between the two currencies is 0.45. Part 1 | Attempt 3/10 for 9 pts. If 60% of portfolio value is denominated in dollars and 40% in euros, what is the standard deviation of the portfolio? $+ decimals Submit