EBK PRINCIPLES OF MACROECONOMICS
8th Edition
ISBN: 8220103611855
Author: Mankiw
Publisher: Cengage Learning US
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Chapter 19, Problem 5CQQ
To determine
The impact of capital inflow on the exchange rate and interest rate.
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An actuary analyzes a company’s annual personal auto claims, M and annual commercialauto claims, N . The analysis reveals that V ar(M ) = 1600, V ar(N ) = 900, and thecorrelation between M and N is ρ = 0.64. Compute V ar(M + N ).
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EBK PRINCIPLES OF MACROECONOMICS
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