Assume That You Forecast the Value of the Euro as Follows

question 31

Multiple Choice

Assume that you forecast the value of the euro as follows for the next year:
$\begin{array}{cccc}\underline {\text { Percentage Change} }&\underline{ \text { Probability of Occurrence }} \\ \text {-2\% } &30\%\\ \text { 3\% } &40\%\\ \text { 5\% } &30\%\\\end{array}$

If the interest rate on the euro is 12%, the expected effective yield from a euro-denominated deposit is:

• A) 15.36%.
• B) 15.70%.
• C) 12.00%.
• D) 14.35%.
• E) none of the above

---

Definitions:

Open Field

An area of open, undeveloped land, often related to the legal doctrine that such areas are not protected by the Fourth Amendment's search and seizure protections.

Supreme Court

The highest judicial court in a country or state, which primarily deals with appeals from lower courts.

Fourth Amendment

Part of the U.S. Constitution's Bill of Rights, it protects citizens from unreasonable searches and seizures by the government, requiring any warrant to be judicially sanctioned and supported by probable cause.

Reasonable Expectations of Privacy

The legal standard that protects individuals against intrusions into areas or activities where they have a reasonable belief in the confidentiality of their actions or communications.