Problem #9: A portfolio has a value P(E,S), so that the value P is a function...
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Problem #9: 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 $379,000, while a Euro is $1.50 Canadian, and the index is S = 18,000. If the partial derivatives of P have values = 80,000, and = -18, what approximately will the portfolio as value be if the price of a Euro goes down by 0.07 and the stock index goes down by 742? Problem #9: 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 $379,000, while a Euro is $1.50 Canadian, and the index is S = 18,000. If the partial derivatives of P have values = 80,000, and = -18, what approximately will the portfolio as value be if the price of a Euro goes down by 0.07 and the stock index goes down by 742?
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