Verify the second equality in (2.32), again by using the linearity of expectations. (2.32) Cov[X, Y] =

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Verify the second equality in (2.32), again by using the linearity of expectations.

(2.32)

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A First Course in Quantitative Finance

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Authors: Thomas Mazzoni

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Question Posted: Nov 12, 2018 05:43 AM

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Verify the second equality in (2.32), again by using the linearity of expectations. (2.32) Cov[X, Y] =

Question:

Cov[X, Y] = E[XY] – E[X]E[ Y] = E[Xx³] – E[X]E[X²]=0 + 0 · 1 = 0.

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Again using that EX i...View the full answer

A First Course in Quantitative Finance

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