Sumitomo Bank's risk manager has estimated that its DEAR of two of its major assets in its trading portfolio, foreign exchange and bonds are -$250,000 and -$350,000, respectively. What is the total DEAR of Sumitomo's trading portfolio if the correlation among assets is assumed to be 0.80?

Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. in this case, the country that produces jeans will produce million pairs per week, and the country that produces corn will produce million bushels per week.