### Explain portfolio management

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Explain Portfolio management - Forex

Using the currency exposures and exchange rates given above and the following variance-covariance matrix, determine risk of a USD denominated portfolio. (The table is in percent, but you need to convert it to a decimal)

Currency       pound        euro        JPY
pound           25.0
euro              14.5          12.2
JPY              17.8            5.9        18.5

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