A portfolio has a value P(E, S), so that the value P is a function of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A portfolio has a value P(E, S), so that the value P is a function of E, the price of a Euro in Canadian dollars, and S, the level of the TSX stock index. Presently the portfolio is worth $465,000, while a Euro is $1.50 Canadian, and the index is S = 18,000. If the partial derivatives of P have values OP = 60,000, and ² = -23, what approximately will the portfolio value be if the price of a Euro goes down by 0.05 and the stock index goes down by 458? OF as A portfolio has a value P(E, S), so that the value P is a function of E, the price of a Euro in Canadian dollars, and S, the level of the TSX stock index. Presently the portfolio is worth $465,000, while a Euro is $1.50 Canadian, and the index is S = 18,000. If the partial derivatives of P have values OP = 60,000, and ² = -23, what approximately will the portfolio value be if the price of a Euro goes down by 0.05 and the stock index goes down by 458? OF as
Expert Answer:
Answer rating: 100% (QA)
It is given that p E 60000 p s 23 dE 005 ds 458 Current Value of Po... View the full answer
Related Book For
Macroeconomics
ISBN: 978-1319120054
3rd Canadian edition
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
Posted Date:
Students also viewed these economics questions
-
CASE STUDY: Imax Back in 1997 the CEO of IMAX, Richard L. Gelfond, was sceptical about building a story with Hollywood movie stars into the big screen format. At that time his answer to the criticism...
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
V = 6V 1052 3F 1-what value will be the voltage across the capacitor after 2 times constant? 2-what value will be the voltage across the capacitor after 6 seconds? 3-when will the capacitor be fully...
-
Essex, a manufacturing company is in serious financial difficulty and is unable to meet current unsecured obligations of $1,340,000.00 to some 20 creditors, who are demanding immediate payment. In...
-
What would happen to the dissolved load of a stream if the velocity decreased?
-
Assume that you are thinking about opening a musical instruments store near the college or university you are attending. Guitars, drums, and other types of musical instruments are items you would...
-
Weimar Company's income statement information follows. The average number of shares outstanding was 7,800 for 2011 and 6,900 for 2010. Required Compute the following ratios for Weimar for 2011 and...
-
Step 2: Smooth Sailing 1. Edit the sshd_config file. [Your bash commands here]
-
5 10 points Match the virtual lab procedure with the correct lung volume. 6 7 Ask the subject to inspire a normal inspiration, and breathe out a normal expiration, then exhale as forcibly as possible...
-
The Grimsby Co. in Alberta had $255,000 in 2020 taxable income.Use the tax rates from Table 2.7.What is the average tax rate?Average tax rate %What is the marginal tax rate?Marginal t 0 answers
-
5.) The cash flow forecast for the city of Typical, KY is provided on the following page. (a.) What information does a cash flow forecast provide? (b.) Based on Typical's cash flow forecast, what...
-
Draw the Nyquist plot for the system with open loop transfer function, K s(s+2)(s+10) G(s)H(s)= a) Draw the s-plane map of the system. (2m) b) Draw the Nyquist plot of the system. Show the working...
-
Write a short note on carrier sense mulple access (CSMA). How does it differ from collision-free protocol?
-
Sheridan Supply Company's accounting records show the following at the year ending on December 31, 2025. Purchase Discounts $11300 Freight-In 15300 Purchases 702020 Beginning Inventory 49000 Ending...
-
1. What messages do you think the media are delivering to the public about drug use? 2. Some addiction experts group all addictions together--that is to say, the person addicted to alcohol is...
-
a) What is the linearization L(x) of a function f (x) at a point x = a. What is required of f at a for the linearization to exist? How is linearization used? Give examples.
-
The value of a share of common stock depends on the cash flows it is expected to provide, and those flows consist of the dividends the investor receives each year while holding the stock and the...
-
In many European countries high minimum wages have led to high levels of unemployment and underemployment, and to a two-tier labour system. In the formal labour market, workers have good jobs that...
-
The accompanying table shows data from the World Bank, World Development Indicators, for real GDP per capita (in 2010 U.S. dollars) for Argentina, Ghana, South Korea, and Canada for 1960, 1980, 2000,...
-
The accompanying table illustrates annual salaries and income tax owed by five individuals. Apart from the fact that they receive different salaries and owe different amounts of income tax, these...
-
Grill Master Company sells total outdoor grilling solutions, providing gas and charcoal grills, accessories, and installation services for custom patio grilling stations. Instructions Respond to the...
-
Refer to the revenue arrangement in P18-1. Instructions Consider the following information and respond to the requirements indicated. (a) In response to competitive pressures for the Internet access...
-
Tablet Tailors sells tablet PCs combined with Internet service (Tablet Bundle A) that permits the tablet to connect to the Internet anywhere (set up a Wi-Fi hot spot). The price for the tablet and a...
Study smarter with the SolutionInn App