Easy points for you, thank me later… I’m always so happy when I correctly calculate the total standard deviation of the foreign asset combined with the currency for currency risk contribution! When I finish I either: 1) Choose the distractor where you don’t take the square root of the variance, or 2) Choose the distractor where you take the square root, but don’t subtract the foreign asset standard deviation. This is an easy question where candidates will most likely fall for the tantalizing distractors. DON’T LET IT BE YOU!!
yes…flipping back to st dev always gets me on those questions. I get so tangled up in all the calcs I forget to sqrt it.