Exhibit 20-3 Cameron Corporation Would Like to Simultaneously Borrow Japanese Yen (¥)

Multiple Choice

Exhibit 20-3
Cameron Corporation 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:

-Refer to Exhibit 20-3. What is the expected financing rate of the portfolio contemplated by Cameron Corporation?

A) 3.10%.
B) 1.90%.
C) 17.00%.
D) 13.00%.
E) none of the above