RDP 8702: Open Market Operations in Australia: A U.S. Perspective Equation (8)

V r = ( 1 c 2 b ) 2 ( a+b ) 2 σ u 2 + ( 1+ c 2 a ) 2 ( a+b ) 2 σ w 2 + σ e 2 MathType@MTEF@5@5@+= feaagKart1ev2aaatCvAUfeBSjuyZL2yd9gzLbvyNv2CaerbuLwBLn hiov2DGi1BTfMBaeXatLxBI9gBaerbd9wDYLwzYbItLDharqqr1ngB PrgifHhDYfgasaacH8srps0lbbf9q8WrFfeuY=Hhbbf9v8qqaqFr0x c9pk0xbba9q8WqFfea0=yr0RYxir=Jbba9q8aq0=yq=He9q8qqQ8fr Fve9Fve9Ff0dmeaabaqaciGacaGaaeqabaWaaeaaeaaakeaacaqGwb WaaSbaaSqaaiaabkhaaeqaaOGaeyypa0ZaaSaaaeaadaqadaqaaiaa igdacqGHsislcaqGJbWaaSbaaSqaaiaaikdaaeqaaOGaaeOyaaGaay jkaiaawMcaamaaCaaaleqabaGaaGOmaaaaaOqaamaabmaabaGaaeyy aiabgUcaRiaabkgaaiaawIcacaGLPaaadaahaaWcbeqaaiaaikdaaa aaaOGaeq4Wdm3aa0baaSqaaiaabwhaaeaacaaIYaaaaOGaey4kaSYa aSaaaeaadaqadaqaaiaaigdacqGHRaWkcaqGJbWaaSbaaSqaaiaaik daaeqaaOGaaeyyaaGaayjkaiaawMcaamaaCaaaleqabaGaaGOmaaaa aOqaamaabmaabaGaaeyyaiabgUcaRiaabkgaaiaawIcacaGLPaaada ahaaWcbeqaaiaaikdaaaaaaOGaeq4Wdm3aa0baaSqaaiaabEhaaeaa caaIYaaaaOGaey4kaSIaeq4Wdm3aa0baaSqaaiaabwgaaeaacaaIYa aaaaaa@5F8F@