Seneca Inc. is a Canada-based exporting firm that expects to receive payments denominated in both euros and British Pounds (GBP) in one month. Based on today's spot rates, the Canadian dollar value of the funds to be received is estimated at CAD 500,000 for the euros and CAD 300,000 for the British Pounds. Based on data for the last fifty months, Seneca estimates the standard deviation of monthly percentage changes to be 8% (0.08) for the euro and 3% (0.03) for the British Pounds. The correlation coefficient between the euro and the British Pounds is -0.30 (negative 0.30)

Which currency is riskier to hold?

A) Euro
B) British Pounds
C) Equal risk
D) Not enough information