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 $364,000, while a Euro is $1.50 Canadian, and the index is S = 18,000. If the partial derivatives of P have values ∂P ∂E = 68,000, and ∂P ∂S = −27, what approximately will the portfolio value be if the price of a Euro goes down by 0.04 and the stock index goes down by 413?
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 $364,000, while a Euro is $1.50 Canadian, and the index is S = 18,000. If the partial derivatives of P have values ∂P ∂E = 68,000, and ∂P ∂S = −27, what approximately will the portfolio value be if the price of a Euro goes down by 0.04 and the stock index goes down by 413?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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| 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 $364,000, while a Euro is $1.50 Canadian, and the index is S = 18,000. If the partial derivatives of P have values
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