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Question
Sumitomo Bank's risk manager has estimated that the DEARs of two of its major assets in its trading portfolio, foreign exchange and bonds, are -$150,000 and -$250,000, respectively.
What is the total DEAR of Sumitomo's trading portfolio if the correlations among assets are ignored?
A. -$100,000.
B. -$291,548.
C. -$350,000.
D. -$380,789.
E. -$400,000.
Answer
This answer is hidden. It contains 36 characters.
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