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Business, 13.05.2021 18:10 aziah86

Suppose that Chance Co., a U. S. based MNC, seeks to forecast the dollar value of the British pound in one month. It uses the current spot rate of the pound as its forecast ($1.10), and determines that the standard deviation of the pounds movements over the last year has been 2.00%. Note: Assume the movements of the pound are normally distributed, and the MNC believes there is a 95% chance that the value of the pound will be within two standard deviations of the forecasted value. In general, the larger the standard deviation of a currency's movement, the will be the resulting interval forecast.

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Suppose that Chance Co., a U. S. based MNC, seeks to forecast the dollar value of the British pound...
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