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Finance

Question: Calculate the total risk of the foreign portfolio.

a. Write the formula used to determine the volatility of the foreign portfolio.

b. Label and identify the values of each input.

c. Calculate and then bold/highlight the final solution.

Table 1	Global Portfolio Data
Date	Lotos (PLN)	Lotos (USD)	Div.	ROPC_L	USD T-bond (%)	ROPC_b	FX = zl/$	FX = $/zl	ROPC_fx	ROPC_fp	Joint ROPC_gp
15-Sep	253.74	66.27			145.1406		3.8289	0.2612
22-Sep	271.43	71.03			145.4788		3.8214	0.2617
29-Sep	309.08	78.01			144.6211		3.9621	0.2524
6-Oct	273.64	67.92			142.7324		4.0289	0.2482
13-Oct	251.2	67.27			140.0375		3.7342	0.2678
20-Oct	220.57	61.02	zl3.187		139.0325		3.6147	0.2766
27-Oct	220.99	61.96			138.9878		3.5667	0.2804
3-Nov	229.65	63.91	$0.832		138.4261		3.5933	0.2783
10-Nov	271.02	64.85			139.9121		3.6209	0.2762
							Pip = 4
	Which one?						Which one?

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