Assessing Currency Volatility Zemart is a U.S. firm that plans to establish an international business in which it will export goods to Mexico (these exports will be denominated in pesos) and to Canada (these exports will be denominated in Canadian dollars) once a month and, therefore, will receive payments once a month. It is concerned about exchange rate risk. Zemart wants to compare the standard deviation of exchange rate movements of these two currencies against the U.S. dollar on a monthly basis. For this reason, the company asks you to perform the following analyses:
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