Assume an FI Holds Three Different Positions

question 17

Multiple Choice

Assume an FI holds three different positions. The following DEAR information is available for the positions. Position 1 is a five-year zero coupon bonds with DEAR of $12 500, position 2 is a CHF spot contract with DEAR of $9500 and the third position are Australian equities with DEAR of $34 500. The five-year zero coupon bonds and the CHF spot position have a negative correlation of 0.5, the correlation between the zero coupon bonds and the Australian equities is positive 0.5 and the correlation between the CHF spot contract and the Australian equities is positive 0.2. What is the DEAR of the portfolio?

• A) 12 500 + 9500 + 34 500 = $56 500.
• B) 12 500(-0.5) + 9500(0.5) + 34 500(0.2) = $5400.
• C) [12 500² + 9500² + 34 500² - 2(-0.5)(12 500)(9500) - 2(0.5)(12 500)(34 500) - 2(0.2)(9500)(34 500)]^1/2 = $31 514.
• D) [$12 500² + $9500² + $34 500² + 2(-0.5)(12 500)(9500) + 2(0.5)(12 500)(34 500) + 2(0.2)(9500)(34 500)]^1/2 = $43 363.

Understand the significance of portion control and the purpose of dietary guidelines and food labeling.

Describe the basics of special dietary requirements related to health conditions, cultural, and religious practices.

Understand the properties and importance of dietary minerals and the health impact of their deficiencies.

Understand the therapeutic uses of various natural substances and diets in health and disease management.

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On-Site Alterations

Adjustments or changes made to a product or structure at its location of use or installation.

Full-Service Retailers

Businesses that offer a wide range of services to their customers, including sales assistance and after-sales services.