Required: Assume that interaffiliate cash flows are uncorrelated with one another. Calculate the standard deviation of the portfolio of cash held by the centralized depository for the following affiliate members: Note: Round the final answer to nearest whole dollar. Affiliate U.S. Canada Mexico Chile Expected Transaction Standard Deviation $ 30,000 $ 100,000 $ 150,000 $ 60,000 $ 175,000 $ 30,000 $ 200,000 $ 70,000 Portfolio standard deviation

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 10MCQ
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Vijay 

Required:
Assume that interaffiliate cash flows are uncorrelated with one another. Calculate the standard deviation of the portfolio of cash held
by the centralized depository for the following affiliate members:
Note: Round the final answer to nearest whole dollar.
Affiliate
U.S.
Canada
Mexico
Chile
Expected
Transaction
Standard
Deviation
$ 30,000
$ 100,000
$ 150,000
$ 60,000
$ 175,000
$ 30,000
$ 200,000
$ 70,000
Portfolio standard deviation
Transcribed Image Text:Required: Assume that interaffiliate cash flows are uncorrelated with one another. Calculate the standard deviation of the portfolio of cash held by the centralized depository for the following affiliate members: Note: Round the final answer to nearest whole dollar. Affiliate U.S. Canada Mexico Chile Expected Transaction Standard Deviation $ 30,000 $ 100,000 $ 150,000 $ 60,000 $ 175,000 $ 30,000 $ 200,000 $ 70,000 Portfolio standard deviation
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