Mikhail Khodorkovsky'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 USD201 million and CHF149 million in Swiss banks, in addition to accounts in Russia still holding RUB1.5 billion. Using the exchange rate table , answer the following:
a. What is the value of Mikhail's portfolio measured in Russian rubles?
b. What is the value of Mikhail's portfolio measured in Swiss francs?
c. What is the value of Mikhail's portfolio measured in U.S. dollars?
d. Which currency demonstrated the greatest fluctuations in total value over the six dates?
a. What is the value of Mikhail's portfolio measured in Russian rubles?
Calculate the portfolio value as measured in rubles in 2013. (Round to the nearest ruble.)
Calculate the portfolio value as measured in rubles of 2014. (Round to the nearest ruble.)
b. What is the value of Mikhail's portfolio measured in Swiss francs?
Calculate the portfolio value as measured in francs in 2013. (Round to the nearest franc.)
Calculate the portfolio value as measured in francs of 2014. (Round to the nearest franc.)
c. What is the value of Mikhail's portfolio measured in U.S. dollars?
Calculate the portfolio value as measured in dollars of 2013. (Round to the nearest dollar.)
Calculate the portfolio value as measured in dollars of 2014. (Round to the nearest dollar.)
d. Which currency demonstrated the greatest fluctuations in total value over the six dates? (Select the best choice below.)
A. The currency which demonstrated the greatest fluctuations in total value over the six dates is the Russian ruble.
B. The currency which demonstrated the greatest fluctuations in total value over the six dates is U.S. dollar.
C. The currency which demonstrated the greatest fluctuations in total value over the six dates is the Swiss franc.
Russo-Swiss Cross - 2015
Switzerland has long served as a cornerstone of banking conservatism and a safe port in a world of currency storms. Swiss banks had long been used by investors from all over the world as financially secure institutions that would preserve the depositors wealth with confidentiality. A large part of the security offered was the Swiss franc itself. Russian citizens of wealth had used Swiss banks heavily in recent years as a place where they could shelter their capital from politics, both inside Russia and the outside (EU and US) world. But beginning in the fall of 2014 the Russian ruble's value began to slide against the Swiss franc, threatening their wealth. (Click on the icon
to copy the table below into a spreadsheet.)
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Exchange Rates
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Nov. 7, 2013
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Nov. 7, 2014
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Dec. 4, 2014
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Dec. 16, 2014
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Dec. 24, 2014
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Jan. 16, 2015
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Russian rubles per Swiss franc
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35.286
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48.252
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56.248
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70.289
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55.366
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76.644
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Russian rubles per U.S. dollar
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32.404
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46.734
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54.412
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67.507
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54.622
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65.072
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U.S. dollars per Swiss franc
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1.0889
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1.0325
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1.0337
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1.0412
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1.0136
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1.1778
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