Consider an mnc that is exposed to the bulgarian lev bgl, Ask an Expert

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Consider an MNC that is exposed to the Bulgarian lev (BGL) and the Romanian leu (ROL). 30% of the MNC's funds are lev and 70% are leu. The standard deviation of exchange movements is 10% for lev and 15% for leu. The correlation coefficient between movements in the value of the lev and the leu is .85. Based on this information, the standard deviation of this two-currency portfolio is approximately: (answer in percentage not decimal i.e 14.12 instead of .1412, you do not need to put the percentage sign)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92355929

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