USA/BDT GBP/BDT EUR/BDT CAD/BDT JPY/BDT USA/BDT 1 ...

50.1K

Verified Solution

Question

Finance

USA/BDT GBP/BDT EUR/BDT CAD/BDT JPY/BDT
USA/BDT 1
GBP/BDT -0.06508951102 1
EUR/BDT -0.0176071478 0.6028715218 1
CAD/BDT 0.9929794538 -0.03307736401 0.002805583242 1
JPY/BDT 0.9922670325 -0.04377623398 0.01481672442 0.9890090207 1

What can you learn from the estimated correlation coefficients? Explain, how you (assuming that you are a financial controller of a large MNC which having cash flows in all currencies) can use the estimated correlation coefficient to manage the foreign exchange rate exposure.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students