Calculate the standard deviation of both the pound and


Suppose a U.S. investor wishes to invest in a British firm currently selling for pound 24 per share. The investor has $48,000 to invest, and the current exchange rate is $2/pound. Consider three possible prices per share at pound 20, pound 25 and pound 30 after 1 year. Also, consider three possible exchange rates at $1.8/pound, $2/pound and $2.2/pound 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. (Round your answers to 2 decimal places. Do not round intermediate calculations. Omit the "%" sign in your response.)

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Financial Management: Calculate the standard deviation of both the pound and
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