Question: Question 5 1 1 pts Why might it be hard to quantify currency risk in a pegged exchange rate system? The historical volatility measured in
Question
pts
Why might it be hard to quantify currency risk in a pegged exchange rate system?
The historical volatility measured in the data is too high
Historical data may be very noisy
Noise traders outnumber informed traders
The bidask spread is too large
It is hard to measure and quantify the latent volatility directly
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