Based on the following data, the most volatile currency in relation to the Australian dollar is? σµMYR0.08493.1000INR1.607155.2000CLP7.8359556.4211MXN0.442615.3123Group of answer choicesMXNINRCLPMYR
Question
Based on the following data, the most volatile currency in relation to the Australian dollar is? σµMYR0.08493.1000INR1.607155.2000CLP7.8359556.4211MXN0.442615.3123Group of answer choicesMXNINRCLPMYR
Solution
The most volatile currency in relation to the Australian dollar would be the one with the highest standard deviation (σ). The standard deviation is a measure of how spread out numbers are, or in this case, how much a currency's value fluctuates.
Based on the data provided:
- MYR has a standard deviation of 0.0849
- INR has a standard deviation of 1.6071
- CLP has a standard deviation of 7.8359
- MXN has a standard deviation of 0.4426
Therefore, the most volatile currency in relation to the Australian dollar is the CLP (Chilean Peso), as it has the highest standard deviation (7.8359).
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