Cameron Corporation Cameron Plc Would Like to Simultaneously Borrow Japanese

Multiple Choice

Cameron Corporation Cameron plc would like to simultaneously borrow Japanese yen (¥) and Sudanese dinar (SDD) for a six-month period. Cameron would like to determine the expected financing rate and the variance of a portfolio consisting of 30% yen and 70% dinar. Cameron has gathered the following information: Mean effective financing rate of Japanese yen for six months 4% Mean effective financing rate of Sudanese dinar for six months 1% Standard deviation of Japanese yen's effective financing rate .10 Standard deviation of Sudanese dinar's effective financing rate .20 Correlation coefficient of effective financing rates of these two currencies .23 What is the expected standard deviation of the portfolio contemplated by Cameron?

A) 2.24%
B) 14.98%
C) 2.89%
D) 17.00%
E) None of the above