A Ghanaian firm is raising a one-year international loan made up of a portfolio of three

currencies, the UK pound, the European Union euro and the US dollar. Twenty five percent

(25%) of the loan is in UK pound, thirty five percent (35%) is in euros and the remaining

forty percent (40%) of the loan is in US dollars. Over the one-year period of the loan, it is

expected that the pound sterling will appreciate by 10% against the cedi whilst the euro

and the dollar are expected to appreciate by 8% and 6% respectively against the cedi. If

interest rate on the pound sterling, the euro and the dollar loans are 6%, 8% and 10%

respectively, calculate the effective cost of financing of the loan in the three-currency

portfolio.