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 S390,000, while a Euro is S1.50 Canadian, and the index is S = 18,000. If the partial derivatives of P have values = 70,000, and -17, what approximately will the portfolio value be if the price of a Euro goes down by 0.06 and the stock index goes down by 397?

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
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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 $390,000, while a Euro is $1.50 Canadian,
and the index is S = 18,000.
If the partial derivatives of P have values = 70,000, and = -17, what approximately will the portfolio
value be if the price of a Euro goes down by 0.06 and the stock index goes down by 397?
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 $390,000, while a Euro is $1.50 Canadian, and the index is S = 18,000. If the partial derivatives of P have values = 70,000, and = -17, what approximately will the portfolio value be if the price of a Euro goes down by 0.06 and the stock index goes down by 397?
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