Assuming That the Inter-Affiliate Cash Flows Are Uncorrelated with One

Assuming that the inter-affiliate 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: $$\begin{array} { l c c } & \text { Expected } & \text { Stardard } \\ \text { Affiliate }& \text { Trarnactions } & \text { Deviation } \\\text { U.S. }& \$ 100,000 & \$ 40,000 \\\text { Carada } & \$ 150,000 & \$ 60,000 \\ \text { Mexico } & \$ 175,000 & \$ 30,000 \\\text { Chile }& \$ 200,000 & \$ 70,000\end{array}$$

A) $34,960.33
B) $139,841.33
C) $104,880.88
D) none of the options

Correct Answer:

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