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What Is the Variance on the Indian (Rp = Rupee)

Question 16

Multiple Choice

What is the variance on the Indian (Rp = rupee) stock market to a Canadian investor if Var(rRp) = 0.105, Var(sC£/Rp) = 0.088, and the local Indian stock market is independent of the value of the rupee?


A) -0.017
B) 0.017
C) 0.193
D) cannot be determined from the given information
E) None of the above

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