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1. Random Variable An investor holds a portfolio consisting of 10 shares of stock and one zero-coupon risk-free bond. The bond will mature one year

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1. Random Variable An investor holds a portfolio consisting of 10 shares of stock and one zero-coupon risk-free bond. The bond will mature one year from now, and its face value is $1,000. The share price one year later, S, is uncertain. The mean of S, is $320 and its standard deviation is $50. (a) What is the mean of the portfolio value one year from now? (b) What is the standard deviation of the portfolio value one year from now? 1. Random Variable An investor holds a portfolio consisting of 10 shares of stock and one zero-coupon risk-free bond. The bond will mature one year from now, and its face value is $1,000. The share price one year later, S, is uncertain. The mean of S, is $320 and its standard deviation is $50. (a) What is the mean of the portfolio value one year from now? (b) What is the standard deviation of the portfolio value one year from now

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