4.100 George Allen has asked you to analyze his stock portfolio, which contains 10 shares of stock...
Question:
4.100 George Allen has asked you to analyze his stock portfolio, which contains 10 shares of stock D and 5 shares of stock C. The joint probability distribution of the stock prices is shown in Table 4.10. Compute the mean and variance for the total value of his stock portfolio. Table 4.10 Joint Probability Distribution for Stock Prices Stock D Price Stock C Price $40 $50 $60 $70 $45 0.00 0.00 0.05 0.20 $50 0.05 0.00 0.05 0.10 $55 0.10 0.05 0.00 0.05 $60 0.20 0.10 0.05 0.00
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