A broker has calculated the expected values of two different financial instruments X and Y. Suppose that

Question:

A has calculated the expected values of two different financial instruments X and Y. Suppose that
E(X) = $100, E (Y) = $90, SD (X) = $12, and SD (Y) — $8. Find each of the following.
a) £ (X+ 10) and SD (X + 10)
b) E (5Y) and SD (5Y)
c) E (X+ Y) and SD (X + Y)
d) What assumption must you make in part c?
Broker
A broker is someone or something that acts as an intermediary third party, managing transactions between two other entities. A broker is a person or company authorized to buy and sell stocks or other investments. They are the ones responsible for...