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a=6 b=6 Q2. (10pt) Asset A value Asset B value 1b 2a 3b 4a 5b 7b 10a ,where a and b are positive numbers(i.e., a,

a=6

b=6image text in transcribed

Q2. (10pt) Asset A value Asset B value 1b 2a 3b 4a 5b 7b 10a ,where a and b are positive numbers(i.e., a, b>0) State of the world Bad Moderate Good Very good Probabilities 1/5 2/5 1/5 1/5 Let a=the # of alphabets of your first name and b=the # of alphabets of your Last name. (Same as Q1) Given that a and b, solve the following questions. (a) Write down the equations for E(A) and E(B) with numbers (not just formula), and get the values by hand or calculator.(2pt) (b) Write down the equations for Var(A) and Var(B) with numbers (not just formula), and get the values by hand or calculator.(4pt) (c) Write down the equation for Cov(A, B) with numbers (not just formula). (4pt) Don't need to get the value

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