1. GE is considering issuing two foreign currency denominated bonds (one-year maturity) to raise $100. What would be the percentage of $100 debt raised in terms of SF which would minimize the risk of the debt portfolio? Use the following data:

   E(R$): expected effective cost of bond = 15%

   = 24%.

   E(R$) : expected effective cost of Swiss franc bond = 10%

   = 20%.

   Covariance: (, SF) = -.009

   		37.09%
   		57.61%
   		32.38%
   		73.55%