$($i$)$ From the Z$-$score calculated using the weights and the computed values, is the country manager likely to approve the loan to the foreign country? Explain why or why not? $(5$ points$)$

$($C$)$ A model for estimating the probability of debt rescheduling $($Ri$)$ is given as follows:

$R_i=0\mathrm{.}32DSR+0\mathrm{.}52IR-0\mathrm{.}08$INVR$+0\mathrm{.}67$VAREx$+0\mathrm{.}78MG$

$($DSR$=$Debt Service Ratio; IR$=$Import Ratio; VAREX$=$Variance of Export Revenue; MG$=$Domestic Money Supply$)$

Two countries are being evaluated on their Sovereign risk based on only two variables $($in percentages$),$ the details of which are given here below:

$\backslash$table$[[,$Country A$,$Country B$],[$MG$,40,30],[$VAREX$,3,10]]$

Which country possesses the most sovereign risk based only on the two variables indicated above? Support your answer with detailed computations $(10$ Points$).$

$2.($a$)$ The mean change in the value of a portfolio of trading assets has been estimated to be $0$ with a standard deviation of $30$ percent. Yield changes are assumed to be normally distributed.