Prove that for any securities X and Y: E(X2)= (E(X))2+VAR( ) If rr,-1, then (X +
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E(X2)= (E(X))2+VAR( ) If rr,-1, then σ (X + Y) Ox + σν. If rxy--I, then σ (X + Y)-Ox-@y
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a Using the definition of expected value b Using the definition of variance c ...View the full answer
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Related Book For
Financial Theory and Corporate Policy
ISBN: 978-0321127211
4th edition
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
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