Assume that interaffiliate cash flows are uncorrelated with

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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:


Expected

Standard

Affiliate

Transactions

Deviation

U.S.

$100,000

$40,000

Canada

$150,000

$60,000

Mexico

$175,000

$30,000

Chile

200,000

$70,000

Reference no: EM13568692

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