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Suppose a U.S. investor wishes to invest in a British firm currently selling for 40...

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Suppose a U.S. investor wishes to invest in a British firm currently selling for 40 per share. The investor has $12,000 to invest, and the current exchange rate is $2/. Consider three possible prices per share at 39, 44, and 49 after 1 year. Also, consider three possible exchange rates at $1.6/, $2/E, and $2.4/E after 1 year. Calculate the standard deviation of both the pound- and dollar-denominated rates of return if each of the nine outcomes (three possible prices per share in pounds times three possible exchange rates) is equally likely. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Standard deviation of pound-denominated return % Standard deviation of dollar-denominated return %

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