Consider an MNC that is exposed to the Taiwan dollar (TWD) and the Egyptian pound (EGP). 25% of the MNC's funds are Taiwan dollars and 75% are pounds. The standard deviation of exchange movements is 7% for Taiwan dollars and 5% for pounds. The correlation coefficient of the Taiwan dollar with respect to the pound is 0.7. Based on this information, the standard deviation of this two currency portfolio is approximately:
A. 5.13%
B. 2.63%
C. 4.33%
D. 5.55%
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