Party a has agreed to exchange $1 million u.s. for $1.02 million canadian. what is this agreement called?
1 answer:
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Answer:
The portfolio standard deviation is 14.82%
Explanation:
The portfolio standard deviation would be calculated by finding out the variance of the portfolio and taking the square root of it.
Variance of the portfolio = [(1 - .50) x 0.25
] + [0.50
x 0.16
] + [2 x (1 - 0.50) x 0.50 x 0.25 x 0.16 x 0]
= [0.25 x 0.0625] + [0.25 x 0.0256] + [0]
= 0.015625 + 0.0064
VarPort = 0.022025
Std DevPort = √0.022025
Std DevPort = 0.1482 = 14.82 percent
Answer:
Wage rate = $960
Explanation:
Supply of labor is the number of hours workers are willing to work at a given real wage rate. When wage rate increases, supply of labor also increases because more people are encouraged as now they can obtain a higher income. When wage rate decreases, labor supply also decreases.
<em><u>View diagram</u></em>
In this case, however, there has been a decrease in supply, causing the supply curve to shift from S to S1. This can be due to many reasons such as migration, increase in minimum working age or increase in interest in education causing more people to study. When the supply of labor falls, there are less people available for work. Thus, demand exceeds supply, causing a shortage. Hence, the pressure causes price, i.e. wage rate to increase. To determine by how much the increase is, cross-multiplication can be used:
At 25 laborers, wage rate is $600 (25 = 600)
At 15 workers, wage rate is X (15 = X)
We now substitute for X, which is the amount by which wage rate will increase.
25 / 600 = 15 / X
Thus, 25X = 9000 (600 x 15)
9000 / 25 = X
X = 360.
Hence, wage rate at 15 laborers is 600 + 360 = $960
