UESTION 12

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.