The following information refers to questions 21 and 22

Cameron Corporation would like to simultaneously borrow Japanese yen () and Sudanese dinar (SDD) for a 6-month period. Cameron would like to determine the expected financing rate and the standard deviation of financing rate for a portfolio consisting of 30% yen and 70% dinar. Cameron has gathered the following information:

Effective financing rate of Japanese yen or 6 months = 4%

Effective financing rate of Sudanese dinar for 6 months = 1%

Standard deviation for Japanese yens effective financing rate = .10

Standard deviation for Sudanese dinars effective financing rate = .20

Correlation coefficient of effective financing rates of these 2 currencies = .23

21) What is the expected financing rate for the portfolio contemplated by Cameron Corporation?

a) 3.10%

b) 1.90%

c) 17.00%

d) 13.00%

e) None of the above

22) What is the expected standard deviation of financing rate for the portfolio contemplated by Cameron?

a) .0224

b) .1498

c) .0289

d) .1700

e) None of the above