Question
Problem 9.8 Mikhail Kodorkovsky's Dilemma Mikhail Khodorkovsky was one of the infamous Russian oligarchs, accumulating billions of dollars in wealth in the mid-1990s with the
Problem 9.8 Mikhail Kodorkovsky's Dilemma
Mikhail Khodorkovsky was one of the infamous Russian oligarchs, accumulating billions of dollars in wealth in the mid-1990s with the fall of the Soviet Union. But in 2003 he had been imprisoned by the Russian state for a decade. Upon his release from prison in 2013 he had taken up residence in Switzerland with his money. In November 2014 Mikhail held a portfolio of USD 200 million and CHF150 million in Swiss banks, in addition to accounts in Russia still holding RUB1.2 billion. Using the exchange rate table, answer the following:
a) What is the value of Mikhails portfolio as measured in Russian rubles?
b) What is the value of Mikhails portfolio as measured in Swiss francs?
c) What is the value of Mikhails portfolio as measured in U.S. dollars?
d) Which currency demonstrated the greatest fluctuations in total value over the six dates?
| Nov 7,2013 | Nov 7,2014 | Dec 4,2014 | Dec 16,2014 | Dec 24,2014 | Jan 16,2014 |
Rubles per franc | 35.286 | 48.252 | 56.249 | 70.285 | 55.362 | 76.639 |
Rubles per US dollar | 32.408 | 46.730 | 54.416 | 67.509 | 54.619 | 65.071 |
US dollar per franc | 1.0888 | 1.0326 | 1.0337 | 1.0411 | 1.0136 | 1.1778 |
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