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...3 (A) Write the formula for the covariance for two random variables, Z and Y that have N outcomes, probabilities (P1, P2,...,PN) and values
...3 (A) Write the formula for the covariance for two random variables, Z and Y that have N outcomes, probabilities (P1, P2,...,PN) and values (21, 22, ,ZN), respectively (y, y2,..., YN) (meaning that with probability pn we observe Z = Zn together with Y = yn). (B) Also write the formula for the correlation coefficient.
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A The formula for the covariance between two random variables Z and Y with N outcomes is CovZ Y i1 t...
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Financial Theory and Corporate Policy
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
4th edition
321127218, 978-0321179548, 321179544, 978-0321127211
