I know that normally you can't just add two VaRs straight ahead and you need to use the formula with the sum of squares and the square root. However, in the marking scheme for the task in the image two values at risk are added without any squares and root. Can anybody explain why it is valid in this situation?
P.S. All the calculations in the task are performed for exchange rates of 1.23 and 1.4, not 0.4 and 1.28