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A broker has calculated the expected values of two different financial instruments X and Y. Suppose that E(X) = $84, E(Y) = $83, SD(X) =
A broker has calculated the expected values of two different financial instruments X and Y. Suppose that E(X) = $84, E(Y) = $83, SD(X) = $12 and SD(Y) = $10. Find each of the following. a) E(X + 10) and SD(X + 10) b) E(5Y) and SD(5Y) c) E(X + Y) and SD(X + Y) d) What assumption must you make in part c? a) Find E(X + 10) and SD(X + 10). E(X + 10) = (Simplify your answer. Do not include the $ symbol in your answer.) SD(X + 10) = (Simplify your answer. Do not include the $ symbol in your answer.) b) Find E(5Y) and SD(5Y). E(5Y) = (Simplify your answer. Do not include the $ symbol in your answer.) SD(5Y) = (Simplify your answer. Do not include the $ symbol in your answer.)c) Find E(X + Y) and SD(X + Y}. E(X+ Y) = (Simplify your answer. Do not include the $ symbol in your answer.) SD(X + Y) = (Round to two decimal places as needed. Do not include the $ symbol in your answer.) d) What assumption must you make in part 0? Choose the correct answer below. 0 A. To calculate the standard deviation, X and Y must be independent. 0 B. To calculate the expected value, X and Y must be independent. 0 C. To calculate the expected value and standard deviation, X and Y must be independent. H I'\\ II- ___..___.I.:...__ ___ ____.___...l_ -_I.._ ___l _
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