1.Assume an FI holds three different positions. The following DEAR information is available for the positions. Position 1 is five-year zero-coupon bonds with DEAR of $15,000, position 2 is a CHF spot contract with DEAR of $9,500 and the third position are Australian equities with DEAR of $20,000. The five-year zero-coupon bonds and the CHF spot position have a correlation of 0.3, the correlation between the zero-coupon bonds and the Australian equities is -0.6 and the correlation between the CHF spot contract and the Australian equities is 0.2. What is the DEAR of the portfolio (round to two decimals)?

2.Assume the value of an FIs average loans is $300 and the value of its average deposits is $400. The FI has liquid assets of $100. What is the FIs financing requirement?

3.Consider the following situation: an FI holds 30 per cent of its assets in liquid securities with a fair market value of $600 and the remaining 70 per cent of its assets in housing loans with a fair market value of $300. Further assume that in case of immediate liquidation, the FI would receive $500 for its liquid securities and $250 for its housing loans. What is the FIs liquidity index (round to two decimals)?