Suppose that in Problem 20 17 the correlation between the S P 500 Index (measured in dollars) and the FT SE 100 Index (measured in sterling) is 0 7, the correlation between the S P 500 index (measured in dollars) and the dollar sterling exchange rate is 0 3, and the daily volatility of the S P 500 Index is 1 6 What is the correlation between the S P 500 Index (measured in dollars) and the FT SE 100 Index when it is translated to dollars

Question: Suppose that in Problem 20.17 the correlation between the S&P 500 Index (measured in dollars) and the FT-SE 100 Index (measured in sterling) is 0.7,

Suppose that in Problem 20.17 the correlation between the S&P 500 Index (measured in dollars) and the FT-SE 100 Index (measured in sterling) is 0.7, the correlation between the S&P 500 index (measured in dollars) and the dollar-sterling is 0.3, and the daily volatility of the S&P 500 Index is 1.6%. What is the correlation between the S&P 500 Index (measured in dollars) and the FT-SE 100 Index when it is translated to dollars?

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