Standard deviation of portfolio-volusia inc

Assignment Help Finance Basics
Reference no: EM132689544

Volusia Inc is a US based exporting firm that expects to receive paymentsdenominated in both Euros and Canadian Dollars in one month. Based on todaysspot rate the dollar value of the funds to be received is estimated at $400000 for Eurosand $500000 for Canadian Dollars. Based on Data for the last fifty months the standard deviationof montly percentage changes to be 8% for the Euro and 3% for the Canadian dollar. The correlation coefficientbetween the Euro and the Dollar is 0.30

What is the Standard Deviation of this portfolio?

Reference no: EM132689544

Questions Cloud

Problem set on interest rate hedging : Summa Corp. must pay floating rate interest three months from now on a loan of $1m. It wants to lock in these interest payments with an interest rate futures
Discussing electronic innovation and the government : Find a peer-reviewed scholarly journal article discussing electronic innovation and the government. Complete a review of the article by writing a 2-3 page.
Social media in public administration communications : Determine one challenge and one opportunity regarding the use of social media in public administration communications.
Compute the break-even point as a percent of capacity : Compute the break-even point as a percent of capacity. The neighbourhood bookstore sells novels for $17 per unit. The cost to purchase one book is $15.
Standard deviation of portfolio-volusia inc : Volusia Inc is a US based exporting firm that expects to receive paymentsdenominated in both Euros and Canadian Dollars in one month. Based on todaysspot
Is there another approach that might work better : Today's Global Economy is very top-down driven with the government making all the decisions and regulations as it relates to doing business globally.
Realism-liberalism and constructivism : Realism is the oldest and most lasting theory of international relations. Liberal international relations theory should not be confused with Liberal American
How many jobs would have to generate before starts : How many jobs would she have to generate before she starts to make a profit? Make the assumption that it takes an accounting student two hours
Conducting a forensics investigation in brief : For the final project, you will be conducting a forensics investigation using one of the following items: A smartphone, A network (ideally, a wireless network).

Reviews

Write a Review

Finance Basics Questions & Answers

  The niendorf corporation produces teakettles which it sells

the niendorf corporation produces teakettles which it sells for 15 dollars each. fixed costs are 700000 for up to

  Describe the type of organizational culture

Identify and describe the type of organizational culture you wish to create.(2) describe the step by step plan you will follow to influence

  Compute descriptive statistics and perform a paired t test

Compute descriptive statistics and perform a paired t test. State your findings and conclusions in a report to the vice president for human resources.

  Bank of oklahoma has the capacity to borrow 20 million

Bank of Oklahoma has the capacity to borrow 20 million in Canadian dollars (C$) or 10 million in U.S. dollars ($). The bank believes that the C$ will appreciate over the next 10 days from $.35 to $.37

  What rate would you actually be paying here

The interest rate quotation in this example requires the borrower to pay 5 points to the lender up front and repay the loan later with 9 percent interest

  Which projects should undertake

Company ABC estimates its weighted average cost of capital (WACC) is 10.5%; it has the following list of capital budgeting projects.

  Eliminate direct materials and labor expense

Using strictly a financial basis of evaluation, is it is more beneficial to make or to buy the following subassembly process - A vendor has proposed to provide the subassembly work at a cost of $14 per unit in year one, increasing their price at the..

  What will be the price of the warrant

If the common stock price goes up to $19 and the speculative premium goes down to $1.50, what will be the price of the warrant?

  Why it is important to investigate which option is right

Often times many people don't qualify or have options for financing so this why it is important to investigate which option is right for you.

  Calculate the expected abnormal return

The large number of securities in each of the ten portfolios convinces you that they are well-diversified collections of assets.

  What is the net cost to each party in the swap

What is the net cost to each party in the swap? Show your work in detail.

  What concerns you most about what the authors identified

Read and assess the implications in the attached HBR article reprint "Do You Know Your Cost of Capital" and prepare the following reply in a report format.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd