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: Affiliate Expected Transaction Standard Deviation U.S. $100,000 $40,000 Canada $150,000 $70,000 Mexico $175,000 $35,000 Chile $200,000 $75,000
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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:
Affiliate | Expected Transaction |
Standard Deviation |
||
U.S. | $100,000 | $40,000 | ||
Canada | $150,000 | $70,000 | ||
Mexico | $175,000 | $35,000 | ||
Chile | $200,000 | $75,000 | ||
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- 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: Affiliate U.S. Canada Mexico Chile Expected Transaction $100,000 $150,000 $175,000 $200,000 Portfolio standard deviation Standard Deviation $ 40,000 $ 60,000 $ 25,000 $70,000The following table shows the net cash flow for each currency for Cleveland Co. Total Inflow Total Outflow Net Inflow or Net Inflow or Outflow, In Outflow (Millions) Expected Exchange Rate Dollars (Millions) Currency Euro (Millions)(Millions) 30 euros Canadian Dollar $C30 15 euros 15 euros $C20 C$10 Suppose that the euro and the Canadian dollar are both highly correlated. $1.20 18.00 $0.90 $9.00 All else equal, this positive correlation means that the MNC is likely subject to a degree of transaction exposure.Assume the following to be a portion of the simplified balance of payments statement for a hypothetical country. The values are given in billions of dollars. Exports Imports Capital Outflows Capital Inflows $900 - $675 - $225 $135 If the central bank has not changed its holding of foreign-currency reserves during this period, then the capital-service account for this country should be equal to billion.
- International financial management : MCQ Assume the Canadian dollar is equal to £0.51 and the Peruvian Sol is equal to £0.16. The value of the Peruvian Sol in Canadian dollar is: (a) about 3.1875 Canadian dollars. (b) about .3137 Canadian dollars. (c) about 2.36 Canadian dollars. (d) about .3137 British pound (e) about .3137 Peruvian Sol. 2. Assume that a bank’s bid rate on Swiss francs is £0.25 and its ask rate is £0.26. Its bid-ask percentage spread is: (a) about 3.85 (b) about 4.00% (c) about 3.55% (d) about 4.15%Which is true of FedGlobalSM ACH Payments offered by Federal Reserve Bank Services? A fixed-to-fixed transfer method allows converted check payments to be settled during the current processing day The fixed-to-variable option allows funds from accounts at a U.S. depository institution to be retrieved by any receiver at a participating bank location FedGlobal provides a framework for cross-border debit payments between 35 countries An account-to-account transfer is used to distribute ACH credit payments between deposit accounts3. Determine the value the U.S. based MNC with the following free cash flow and exchange rate estimations. The MNC has operations in Bangladesh and India. Year 1 Year 2 Year 3 Year 4 Year 5Expected Exchange ratesUSD vs INR 50 47 45 42 40USD vs BDT 80 84 88 92 97Expected free cash flows (in millions)India (in INR) 5000 5000 4000 4000 *40000Bangladesh (in BDT) 8000 8000 9000 9000 *80000USA (in USD) 200 200 300 300 *3000The firm has an overall cost of capital of 12%
- 15. In the figure at right, label curves A and B respectively, % frequency B A Foreign cash flow ($U.S. equivalents) a. b. C. d. unhedged, hedged. hedged, unhedged. normal, abnormal. none of the above. wwwwwwThe following table contains data for a hypothetical closed economy that uses the dollar as its currency. Suppose GDP in this country is $1,110 million. Enter the amount for consumption. National Income Account Government Purchases (G) Taxes minus Transfer Payments (T) Consumption (C) Investment (I) Complete the following table by using national income accounting identities to calculate national saving. In your calculations, use data from the preceding table. National Saving (S) = Public Saving Y-T-G S Value (Millions of dollars) 300 240 Y-C-T $ Complete the following table by using national income accounting identities to calculate private and public saving. In your calculations, use data from the initial table. Private Saving million million 210 million Based on your calculations, the government is running a budgetInternational financial management: MCQ If the direct exchange rate of the pound is worth $1.3825, What is the indirect rate of the pound? (a) about 0.7233 US dollars. (b) about 1.3825 pounds. (c) about 0.7233 pounds. (d) about 0.7533 pounds. 2. Assume the Canadian dollar is equal to £0.51 and the Peruvian Sol is equal to £0.16. The value of the Canadian dollars Peruvian Sol is: (a) about 3.1875 Sol (b) about .3137 Sol (c) about 5.7681 Sol
- A U.S. MNC has the equivalent of $1 million cash outflows in each of two highly negatively correlated currencies. During ____ dollar cycles, cash outflows are ____. A. none of these B. weak; somewhat stable C. weak; adversely affected D. weak; favorably affectedCertain balance sheet accounts of a foreign subsidiary of Orchid Company have been stated in U.S. dollars as follows: Stated at Accounts receivable, current Accounts receivable, long term Land Patents Multiple Choice Problem 10-7 (Algo) (LO 10-2, 10-4) This subsidiary's functional currency is the U.S. dollar. What total should Orchid's balance sheet include for the preceding items? O $462.000 Current Rates $ 150,000 102,000 51,000 80,000 $383,000 $383.000 Historical Rates $ 170,000 172,000 55,000 85,000 $ 482,000If national income Y = 10,500, disposable income Yd = 8,500 , consumption is C = 8,000, transfer payments TR = 150 and the budget deficit is BD = 200, what is the level of private domestic investment, I ? (please insert the round number without the Euro symbol)