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
|