Exhibit 21-1
to Benefit from the Low Correlation Between the Trinidad

question 23

Multiple Choice

Exhibit 21-1
To benefit from the low correlation between the Trinidad dollar and the Japanese yen (¥) , Sciorra Corporation decides to invest 50% of total funds invested in Trinidad dollars and the remainder in yen. The domestic yield on a one-year deposit is 8%. The Trinidad one-year interest rate is 10% and the Japanese one-year interest rate is 7%. Sciorra has determined the following possible percentage changes in the two individual currencies as follows:
$\begin{array} { l c c } \text { \underline{Currency }} & \text { \underline{Percentage Change }} & \text { \underline{Prabability }} \\\text { Trinidad dollar } & - 1.0 \% & 35 \% \\\text { Trinidad dollar } & 2.0 \% & 65 \% \\\text { Japanese yen } & - 2.0 \% & 45 \%\\\text { Japanese yen } & 1.0 \% & 55\%\end{array}$
-Refer to Exhibit 21-1. What is the probability that the yield of the two-currency portfolio is less than the domestic yield?

• A) .1575.
• B) .35.
• C) .6425.
• D) 1.
• E) none of the above

Identify legal and mandated employee benefits and their importance in the total compensation strategy.

Appreciate the significance of employee assistance programs in supporting employees' personal needs.

Understand and identify various compensation structures and their implications on employee motivation and performance.

Comprehend the components and significance of base compensation and merit pay systems in employee management.

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