An exposure to a currency with a lower standard deviation against an importer's local currency results in a lower degree of risk than exposure to a currency that has a higher standard deviation.

Name: An exposure to a currency with a lower standard deviation against an importer's local currency results in a lower degree of risk than exposure to a currency that has a higher standard deviation.
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Question

Quizplus · Accepted Answer

A lower standard deviation means lower volatility of the currency.

An Exposure to a Currency with a Lower Standard Deviation