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Maston Corporation has forecasted the value of the Russian ruble as follows for the next year: Percentage Change Probability of Occurrence -5% 20% -3% 50%
Maston Corporation has forecasted the value of the Russian ruble as follows for the next year:
Percentage Change Probability of Occurrence
-5% 20%
-3% 50%
1% 30%
If the Russian interest rate is 30 percent, what is the expected cost of financing a one-year loan in rubles?
a. | 32.86 percent. | |
b. | 25.32 percent | |
c. | 27.14 percent. | |
d. | 26.10 percent. |
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