Question: The following table shows the probability distribution related to changes in the exchange rate and in the domestic currency value of foreign assets: Probability 2
The following table shows the probability distribution related to changes in the exchange rate and in the domestic currency value of foreign assets:
Probability
2 0.2 0.1 0.1
4 1 0.25 0.1
6 1.5 0.25 0.2
9 3 0.33 0.1
10 4.5 0.45 0.5
Calculate expected values and variances forand ?
Calculate exposure, ?
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